New studies continue to look at the migration of a “rare
species” – the super-rich, and one thing that some researchers are finding is that
the world’s elite are still attracted to the United Arab Emirates, which is quickly outpacing other countries in modernization.
A
Feb. 21
report
from New World Wealth tracked trends in the geographical distribution of
millionaires around the world. One finding is that the UAE is attracting these high
earners.
The study found that the Emirates attracted approximately 3,000 of these wealthy individuals in 2015 and over 5,000 migrated into the
country in 2016. While the UAE is seen as more of a wealth magnet than its
neighbors, other GCC states also attracted a large share of the world’s wealthy
elite, for example, Qatar gained
around 2,000 millionaires that year.
One reason for the influx, according to researchers, was a
net loss of approximately 6,000 millionaires in neighboring Turkey, where elites
fled political turmoil.
In addition, there are the positives that many mobile
jet-setters see in the UAE, especially in modern, cosmopolitan hubs like Dubai
and Abu Dhabi.
“The UAE’s low tax rates and high safety levels make it
particularly attractive to high-net-worth individuals,” Andrew Amoils, New
World Wealth analyst, said in a press statement. “It also boasts several fast
growing sectors including financial services, technology, health care and
media.”
Some also claim that geopolitical relevance and societal
progressivism make a difference – the study cited Australia as another wealth
magnet, with an estimated 11,000 millionaires moving in during 2016. The U.S.
and the U.K. lost high-net worth individuals during that
time, researchers said.
What does it mean to have a modern Islamic nation
with so many mega-rich residents?
“Islam does not discourage people from getting rich,”
Hammad Ahmad, imam of the Ahmadiyya
Muslim Community, recently told Gulf News Journal. “But Islam does look down on amassing wealth and sitting on it.”
He said that Islamic traditions like alms-giving and a tax on dormant
wealth are meant to enforce these religious and cultural concepts,
although some of them are not currently practiced in many Islamic nations.
Ahmad said although the practice of requiring a 2.5 percent tax on
wealth has been a feature of the Islamic caliphate in times gone by, it is not
currently practiced in today’s GCC nations, at least, not in a consistent and
universal way.
“It depends on the political and economic setup of the
countries in question.” Ahmad said.
However, he added, the general idea is that the state is
responsible for taking in the money from the rich and redistributing it to the
poor.
The idea that millionaires would flock to a nation where the
pervading culture promotes wealth redistribution seems to be an inherent
repudiation of the idea that market economics is the only force that the rich
care about. In today’s world, it does not seem as if political catering
inherently attracts high net worth people to a country.
Excessive wealth, Ahmad said, is harmful. When money does
not change hands, it does not feed the economy.
“It harms people. It harms the economy.” Ahmad said.
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