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Explaining everything you need to know about financial advisors in Dubai: 

• Dubai and Abu Dhabi’s influx of wealth in 2023
• What taxes are there in the UAE?
• How to maximise your time in Dubai financially 
• How to find the right financial advisor in Dubai
• The importance of financial advice in Dubai
• Why you need to prioritise financial planning in Dubai

Wealth in Dubai

Dubai has metamorphosed from a sleepy fishing outpost to one of the most advanced and affluent cities in the world. Extraordinary growth has led to the creation of vast personal fortunes, with the city drawing people from all over the world seeking to grow their wealth and improve their financial prospects. That prosperity has survived the initial boom, with the UAE continuing to attract talent thanks to its low tax environment and exciting potential for future growth.

Dubai and Abu Dhabi’s influx of wealth in 2023

Wealth continues to flow into Dubai and Abu Dhabi apace. A recent report into high-net-worth individuals in the Middle East found that millionaires have flocked to the Gulf state, entrenching its status as a much-vaunted destination for the well-off. In 2023 the UAE beat off the USA to become the world’s number two destination for investment decisions among ultra-high-net-worth individuals.

Some analysts expect this influx to help boost the UAE’s wealth to $1 trillion by 2026. The forecast follows the UAE’s financial wealth soring by 20 per cent to $700 billion in 2022, after some 2,000 millionaires relocated to the county. The strategic position of the UAE, its premier city’s ‘sun and sand’ appeal, competitive tax regime and untapped potential see the country retain its reputation as an attractive destination for the wealthy.  

What taxes are there in the UAE?

The UAE’s tax regime is among the foremost pull factors serving to attract high-net-worth individuals from around the world. In the UAE, no income tax is paid on salaries, investments, pensions or capital appreciation. By becoming residents of the Gulf Sheikhdom, the world’s wealthy are unburdened from many tax obligations. 

With the rise of remote working, growing numbers of individuals are considering their options concerning tax residency. The UAE government, which is largely funded through a VAT model, has created a welcoming environment for high-net-worth individuals by offering golden visas, straightforward company formation legislation and residency via property investment options.

Wealth management companies in Dubai 

The deVere Group is one of the leading wealth management companies in Dubai. The company helps UAE residents with all parts of their long-term financial planning including general investing, insurance planning and eventual repatriation. Below we explore some of how the deVere Group assists clients in Dubai through the use of independent financial advice. 

Read about deVere’s 20-year success story.

Financial Planning in Dubai 

Dubai is at the centre of a perfect storm of success. But poor planning and bad investments could mean reaping the whirlwind. Some people fail to achieve their financial goals because of poor tax planning, overleveraged expenditure or insurance issues.

Dubai is a high-wage, tax-free city. Knowing how to navigate it correctly will pay dividends. As the premiere wealth management firm in Dubai, financial advisors from deVere stand ready to help you avoid common pitfalls:

No automatic pension savings 

The law in the United Arab Emirates does not mandate automatic pension enrolment. This means that if you are working in Dubai, your employer is not legally required to provide you with a pension. 

Residents in the UAE often earn higher salaries than in other countries. Many high-end jobs will pay a better wage than their equivalents in New York or London. 

However, one of the trade-offs can be the absence of pension savings. Because of this, it is down to the individual to be proactive and save for their retirement. It is essential to set up a pension plan whilst you are in Dubai. 

deVere’s financial planning team helps Dubai residents ensure they are saving a sufficient amount of their wealth to ensure they can make their retirement plans a reality.

Insurance requirements   

When living in Dubai, it is crucial to have insurance in place to protect yourself from life’s uncertainties. deVere Group’s financial planning team will ensure that all your potential risks are mitigated as much as possible. This includes life insurance and critical illness coverage. 

Loss of life in Dubai can lead to the loss of family visa sponsorship, loss of income, the right to repatriation or having remains repatriated. Serious illness can lead to loss of income, loss of employment, and bring on more costs in the way of care for yourself or your children.

deVere Group’s international financial advisors will serve as allies who will flag potential risks and work with you to protect yourself and your family.

Tax structuring of investments   

Residents of Dubai enjoy tax-free growth on specific investments. However, these investments will be taxed once a resident leaves Dubai. The earlier a Dubai resident sits down with a personal financial advisor to arrange tax planning, the less likely they are to experience tax penalties in the future. By looking to the future, you set yourself up to benefit in the long run. 

Education planning necessity  

One of the most critical elements of wealth management in Dubai is education planning. This point is two-fold. Firstly, parents need to plan for private school fees in Dubai. Secondly, longer-term, children growing up in Dubai will often be classified as international students once they apply for university overseas.

For universities in the United Kingdom, this often means fees must be paid upfront and international student fees will apply. International student fees can be cumbersome and are typically three times higher than home student fees.  

With inflation biting, saving up for your child’s education could mean fighting a losing battle. But a bespoke long-term investment plan, tailored to your family’s needs, could put you in good stead to send your children to a world-leading university.

Investor backed protection  

One of the most crucial elements of wealth protection or wealth insurance is ensuring your capital remains in a secure jurisdiction. deVere Group advises clients on how to achieve wealth security through the use of off-shore banking and off-shore account ownership. The purpose of this is to achieve the highest levels of investor-backed protection.

Moreover, these accounts often offer long-term tax benefits known as gross roll-up or tax-free growth, not to mention that off-shore accounts come with the highest level of investor confidentiality. 

Summary

Living in Dubai has numerous financial benefits. However, there is also a degree of increased responsibility as once people move to Dubai; they often surrender a social welfare safety net.

Financial planning and wealth management in Dubai is not just for the ultra-rich. It is for everyone. Everyone needs money for the future, everyone is exposed to financial risks, and everyone can choose to take control of their financial destiny through solid financial planning.