KUALA LUMPUR (June 19): The UK is expected to see an unprecedented net loss of 9,500 millionaires in 2024 — second only to China worldwide, and more than double the 4,200 who left the country last year, which was itself record-breaking following the exodus of 1,600 high-net-worth individuals (HNWIs) in 2022, according to the Henley Private Wealth Migration Report 2024.

The Henley Private Wealth Migration Report 2024, released on Tuesday by international investment migration advisory firm Henley & Partners, features the latest net inflows and outflows of millionaires (namely, the difference between the number of HNWIs with liquid investable wealth of US$1 million [RM4.71 million] or more who relocate to and the number who emigrate from a country) as projected by global wealth intelligence firm New World Wealth, tracks wealth migration trends.

According to the report, for the third year running, the UAE looks set to take first place as the world’s leading wealth magnet, with a record-breaking 6,700 moneyed migrants expected to make the Emirates home by the end of the year, significantly boosted by large inflows from the UK and Europe.

The report said China is again on track to be the biggest millionaire loser globally, with an anticipated net exit of 15,200 HNWIs this year (compared to 13,800 in 2023), whereas India has stemmed its wealth exodus, dropping down to third place after the UK with just 4,300 millionaires projected to leave the country in 2024 (compared to 5,100 last year).

It said South Korea’s HNWI flight is expected to rise with a forecast loss of 1,200 millionaires (compared to 800 in 2023) while the tsunami of millionaires that fled Russia following the outbreak of the Ukraine war appears to be abating with only 1,000 projected to relocate this year (compared to 8,500 in 2022 and 2,800 in 2023).

Henley & Partners Group head of private clients Dominic Volek said 2024 is shaping up to be a watershed moment in the global migration of wealth.

“An unprecedented 128,000 millionaires are expected to relocate worldwide this year, eclipsing the previous record of 120,000 set in 2023.

“As the world grapples with a perfect storm of geopolitical tensions, economic uncertainty, and social upheaval, millionaires are voting with their feet in record numbers.

“In many respects, this great millionaire migration is a leading indicator, signalling a profound shift in the global landscape and the tectonic plates of wealth and power, with far-reaching implications for the future trajectory of the nations they leave behind or those which they make their new home,” said Volek.

The Henley report said that the UK, and London especially, has traditionally been seen as one of the world’s top destinations for migrating millionaires and for many years (from the 1950s to early 2000s) it has consistently attracted large numbers of wealthy families from mainland Europe, Africa, Asia and the Middle East.

However, it said this trend began to reverse around a decade ago as more millionaires began to leave the country and fewer came in.

Notably, during the six-year period from 2017 to 2023 post Brexit, the UK lost a total of 16,500 millionaires to migration.

Provisional estimates for 2024 are even more concerning, with a massive net outflow of 9,500 millionaires projected for this year alone.

The report said besides China, the UK, India, South Korea and Russia, the remaining places in the top 10 millionaire outflow ranking were taken up by Brazil, where a millionaire drain of 800 is projected this year, followed by South Africa (600), Taiwan (400), and Vietnam and Nigeria, which are both set to see 300 millionaires take flight.

Henley said that with its zero income tax, golden visas, luxury lifestyle and strategic location, the UAE has entrenched itself as the world’s number one destination for migrating millionaires and is poised to welcome a record net inflow of 6,700 this year alone.

With consistent high inflows from India, the wider Middle East region, Russia and Africa, the anticipated influx of larger numbers of Brits and Europeans looks set to see the Emirates attract nearly twice as many millionaires as its nearest rival, the US, which is projected to benefit from a net inflow of 3,800 millionaires in 2024.