Do you know the 7 reasons why Indian millionaires are relocating to Dubai?

The prime new business capital

In recent years, many Indian millionaires and business tycoons have relocated to Dubai, United Arab Emirates (UAE). This exodus has caught the attention of global financial analysts, who are now considering the UAE city an emerging business hub for the rich and powerful.

While Dubai has always been a magnet for expatriates worldwide, including millionaires, the last decade has seen an accelerated trend of affluent Indians leaving their home country to start anew in the Arabian Gulf city.

But what exactly is driving Indian entrepreneurs, businesspeople, and high-net-worth individuals (HNWIs) to Dubai, and why is the city becoming the new capital for Indian business elites?

1. Tax-friendly environment

One of the primary reasons for this migration is Dubai’s tax advantages. The UAE offers a favourable tax regime for both individuals and businesses. For many years, Dubai has had no personal income tax, and it has recently introduced additional tax benefits to attract foreign companies, including a 9% corporate tax rate that remains one of the lowest in the world. In comparison, India has a significantly higher corporate tax rate, ranging from 25% to 40%, depending on the company’s size.

Furthermore, Dubai offers a range of tax exemptions, including no capital gains tax, no inheritance tax, and no wealth tax, making it an attractive destination for Indian millionaires seeking to preserve and grow their wealth. These tax breaks are enticing for business owners who wish to reinvest in their companies or expand into international markets without the looming pressure of a significant tax burden.

For Indian HNWIs who often face complex tax rules in India, the simplicity and ease of doing business in Dubai are invaluable. Several well-established companies from India, particularly in the IT, finance, and real estate sectors, have relocated to Dubai for its business-friendly policies and reputation as a global business hub.

2. Proximity to India and growing trade links

Another major factor is Dubai’s geographical proximity to India. Located less than three to four hours by flight from major Indian cities, Dubai serves as an excellent base for those Indians looking to maintain close ties to their homeland while enjoying the benefits of living in a cosmopolitan and business-friendly environment.

The cultural similarities and ease of travel between India and the UAE make it an ideal location for entrepreneurs seeking to continue business in India while expanding their operations internationally.

Moreover, the UAE and India have strong economic and trade relations, with Dubai as a key gateway for Indian goods and services. The growing trade links between the two nations provide ample opportunities for Indian businesspeople to expand their networks, find new investment prospects, and forge partnerships with other Middle Eastern countries. The UAE has long been a hub for Indian expatriates, and the country’s diverse population is reflected in the vibrant Indian business community within Dubai.

3. World-class infrastructure and modern lifestyle

Dubai offers an unparalleled lifestyle to those who can afford it. From luxurious real estate and opulent shopping malls to world-class healthcare, education, and recreational facilities, Dubai provides everything a millionaire could desire regarding quality of life. The city is renowned for its state-of-the-art infrastructure, featuring an iconic skyline, world-class airports, and some of the finest hotels and restaurants in the world.

Dubai is hard to beat for businesspeople seeking a lifestyle that balances work and pleasure. With a combination of modern skyscrapers, lavish villas, and waterfront properties, the city offers a standard of living comparable to the world’s most exclusive cities. Dubai is home to some of the world’s best shopping centres, fine dining options, and entertainment venues, making it a perfect fit for those accustomed to luxury and comfort.

In contrast, many Indian cities struggle with urbanisation issues, including traffic congestion, poor air quality, inadequate infrastructure and rampant government corruption. For Indian millionaires, Dubai’s streamlined infrastructure provides a hassle-free and stress-free living environment.

4. Safety and political stability

Another attractive feature of Dubai is its safety and political stability. The UAE has long enjoyed a reputation as one of the safest countries in the Middle East. Dubai, in particular, is recognised for its low crime rates and effective law enforcement. For Indian millionaires concerned about the security of their assets and families, Dubai offers peace of mind.

In contrast, India has often faced political and social challenges that can create business uncertainty. While India is a democracy and has made significant strides in economic growth over the years, the country is not without its challenges, including corruption, bureaucracy, and unpredictable policy shifts.

Dubai presents a more attractive proposition for many businesspeople seeking a secure and stable environment to grow their wealth and investments.

5. Visa and residency benefits

Dubai has recently introduced several measures aimed at attracting foreign talent and investment. One of the most significant changes is the introduction of long-term residency visas for investors, entrepreneurs, and highly skilled workers. The UAE’s Golden Visa programme enables foreign nationals to reside and work in the UAE for up to 10 years, providing a stable and long-term residency option for Indian millionaires.

Additionally, Dubai offers flexible visa options for business owners, making establishing a presence in the city easier. The UAE government’s push to make it easier for foreign businesses to set up shop and retain residency has made the city an increasingly attractive destination for entrepreneurs.

This flexibility and long-term security appeal to Indian businesspeople, who may seek greater certainty in their personal and professional lives. It’s not just about the financial opportunities; the ability to settle and work in a country encouraging innovation and entrepreneurship is a significant driving factor.

6. Global networking and expanding markets

Dubai is not only a business hub for the Middle East but is increasingly becoming a global networking centre. With its open economy and business-friendly environment, Dubai has attracted entrepreneurs worldwide. As a result, the city is a melting pot of cultures, ideas, and opportunities.

For Indian entrepreneurs, this presents an opportunity to tap into a broader international market and establish business relationships with companies from Europe, Africa, and beyond.

The city’s business events, expos, and conferences have helped entrepreneurs network with like-minded individuals and establish partnerships that would have been more difficult to achieve in India. In addition, Dubai’s focus on innovation and technology has made it a hub for cutting-edge industries, including fintech, AI, and blockchain, which have also sparked the interest of Indian business leaders.

7. Safe haven for wealth management

India’s financial market regulations and political environment can sometimes pose challenges for wealthy individuals regarding wealth management. From fluctuating tax policies to concerns over potential government crackdowns on black money, many Indian millionaires are seeking safer havens to park their wealth.

Dubai has become an attractive choice for wealth management, offering sophisticated financial services and international banking facilities. The city’s liberal economic policies and focus on financial transparency provide a secure and stable environment for those looking to safeguard their assets and plan for the future.

Hero image: Over the last decade, an accelerated trend has seen affluent Indians leave their home country to start anew in Dubai. Credit: Aleksandar Pasaric