Wealth migration: Dubai, Abu Dhabi among cities leading way for centi-millionaire growth

Dubai, Abu Dhabi, Shenzhen and Austin were among cities projected for very high wealth growth by 2040, according to The Centi-Millionaire Report 2024 published by Henley & Partners earlier this week, as the world braces for changing trends in influence on global economics, politics and society.

The US dominated cities with Centi-Millionaire residents, claiming 1st, 2nd, and 3rd places in the Top 50 Cities. New York City topped the list with 744 resident centi-millionaires, followed closely by the Bay Area (including San Francisco and Silicon Valley) with 675, and Los Angeles with 496 super rich residents. London (370), Beijing (347) and Singapore (336) followed closely behind.

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Mumbai and Delhi are placed 14th and 15, respectively, but no Pakistani city officially makes it to the list.

The exclusive club of centi-millionaires – with liquid investable assets of USD 100 million or more – has grown 54% over the last decade and currently boasts 29,350 individuals worldwide, added the report by the residence and citizenship advisory firm.

Henley compiled the report with data from global wealth intelligence firm New World Wealth that systematically tracks global wealth migration trends between countries and cities.

Among the cities also marked for high growth included Palm Beach and West Palm Beach, Taipei and Hangzhou.

However, the geographic distribution of this group across different regions was noteworthy with America and China experiencing a “centi-millionaire boom”, in sharp contrast to their European counterparts.

China’s ascent stands out with its centi-millionaire population expanding by 108% over the past 10 years — outpacing even the stellar performance of the US, whose super-wealthy ranks increased by 81% over the same period.

In contrast, Europe’s centi-millionaire growth has been relatively staid, increasing by only 26% over the past decade.

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“The geography of extreme affluence is shifting. As this elite group continues to grow and migrate, its influence on global economics, politics, and society is likely to be profound and far-reaching,” Dr Juerg Steffen, CEO of Henley & Partners, was quoted as saying in the accompanying press release.

Asia rising

Asian cities are quickly rising in the ranks with four cities and territories now among the world’s Top 10 centi-millionaire hotspots.

Dubai currently accounts for 212 Centi-Millionaires – a leg below Mumbai with 236. Abu Dhabi rounded off the list with 68 individuals.

The UAE has been making efforts to attract wealth and businesses as it diversifies from its oil-heavy economy.

Earlier this month, it was reported that JP Morgan has set up a private banking team in Dubai to provide wealth management services, as the Wall Street bank responded to a growing number of rich people moving to the Gulf.

Western wealth managers have also increased their presence in the United Arab Emirates oft late, as its relatively neutral political stance, ease of doing business, convenient time zones, and tax free status has lured an increasingly diverse pool of investors.

Meanwhile, looking ahead to 2040, several Asian and Middle Eastern cities are poised for explosive growth, with Hangzhou, Shenzhen, Taipei, Dubai and Abu Dhabi projected to see increases of over 150% in centi-millionaires.

Future course of wealth creation

Emerging markets are also set to make their mark.

“As we look to the future, the centi-millionaire map is set to be redrawn,” Steffen assessed.

“Emerging tech hubs such as Shenzhen, Hangzhou, Austin, Taipei, Kyoto, Bengaluru, Warsaw, Tampa, Ho Chi Minh City, Scottsdale, and Salt Lake City are poised for exceptional growth of over 150% in their centi-millionaire populations, while cities benefiting from inward wealth migration — such as Dubai, Abu Dhabi, Riyadh, Lugano, Marrakech, and West Palm Beach — are also expected to see their ultra-wealthy communities as well.”

Furthermore, “nearly two-thirds of the Top 50 Cities for Centi-Millionaires are located in countries offering investment migration programs,” he added.

Riyadh in Saudi Arabia and Bengaluru in India are both forecast to enjoy growth of over 150% in their centi-populations over the next 16 years, added the report.