Over the past two decades, the United Arab Emirates (UAE) have gained global significance not only due to their impressive economic success and geopolitical stability but also through a remarkable process of social opening. This transformation has made the UAE particularly attractive for Ultra High Net Worth Individuals (UHNWIs) — individuals with a net worth of more than 30 million USD — both as a place to live and for investments.
Social Transformation of the UAE
The social opening of the UAE is one of the central pillars of its national development strategy. Historically, the UAE, like many of its neighboring countries, was shaped by traditional values and a relatively conservative social structure. However, in recent decades, the government, especially in Dubai and Abu Dhabi, has proactively taken steps to make the country more international, tolerant, and open.
This transformation is evident in various areas: legal reforms, the promotion of cultural diversity, and a largely tolerant approach to different religions and lifestyles. Since 2020, numerous liberalization measures have been implemented, including:
- Changing the weekend from Friday/Saturday to Saturday/Sunday,
- Introduction of renewable long-term residence visas,
- Legalization of cohabitation for unmarried couples,
- Introduction of personal bankruptcy in civil law (previously under criminal law),
- Relaxation of censorship in films,
- Abolition of the alcohol tax and liberalization of alcohol sales,
- Legalization of gambling (in Ras al-Khaimah, about an hour’s drive north of Dubai),
- A more lenient approach to drug-related offenses,
- Peace and normalization of relations with Israel.
These reforms have made the UAE increasingly attractive, particularly for expats from Western countries, due to the “Western” lifestyle it offers.
Lifestyle
In addition to legal and socioeconomic reforms, the UAE has developed a range of offerings for a wealthy, global elite. By around 2020, a critical mass of world-class amenities had been reached, enhancing the quality of life — such as top-tier leisure activities, fine dining, luxury shopping, as well as educational and cultural offerings.
In Knight Frank’s 2022 “Global Lifestyle Review,” Dubai ranked first for these amenities and also took the top spot in the “Expats Essentials Index.” Since then, Dubai has become one of the most popular destinations for travel and relocation among UHNWIs. And they are coming in large numbers — in 2023 and 2024, more UHNWIs relocated to the UAE, particularly Dubai, than to any other country. This development has had direct implications for the local real estate market, particularly in the luxury property sector — something we have incorporated early on into our investment recommendations for clients.
