War leads to mass exodus of millionaires from Russia and Ukraine

War leads to mass exodus of millionaires from Russia and Ukraine

A private equity tsunami has left Russia and Ukraine, Britain has lost its wealth hub, and the United States is rapidly fading like a magnet for the world rich, according to the latest Henley Global Citizens Report.

The report, which tracks trends in private wealth and investment in migration worldwide, finds that the United Arab Emirates is expected to overtake the United States by attracting the largest net inflows of millionaires globally by 2022.

According to the latest information, destinations that have traditionally attracted rich investors are losing their appetite. Britain, once proclaimed the world’s financial center, continues to see a steady loss of millionaires, with net outflows of 1,500 predicted for 2022.

This trend began five years ago when the Brexit vote and rising taxes saw more wealthy individuals leave the country than enter for the first time. The UK has suffered a total net loss of around 12,000 millionaires since 2017.

Russia has been hit by the largest emigration of millionaires in the last six months, with projected net outflows of 15,000 by the end of 2022 – 15 percent of its wealthy individual population and 9,500 more than in 2019, before the pandemic.

Russia’s invasion in turn leads to a sharp increase in outgoing individuals with high net worth from Ukraine, who are predicted to suffer their highest net loss in the country’s history – 2,800 millionaires, or 42 percent of this cohort, and a net loss of 2,400 more than 2019.

No country-specific figures are available for 2020 and 2021 due to Covid-related shutdowns and travel restrictions.

The top 10 countries in terms of net inflows of wealthy individuals by 2022 will be the United Arab Emirates, Australia, Singapore, Israel, Switzerland, the United States, Portugal, Greece, Canada and New Zealand.

A large number of millionaires are also expected to move to Malta, Mauritius and Monaco.

On the other hand, the 10 countries where the highest net outflows of people with high net worth are Russia, China, India, Hong Kong, Ukraine, Brazil, Great Britain, Mexico, Saudi Arabia and Indonesia.

The attractiveness of another financial giant, the United States, is also declining rapidly. America is particularly less popular with migrant millionaires today than before Covid, “perhaps in part because of the threat of higher taxes,” the report states.

The country still attracts more wealthy individuals than it loses on emigration, with a net inflow of 1,500 estimated for 2022, although this is an 86 percent decrease from 2019 levels, which saw a net inflow of 10,800 millionaires.

However, the United Arab Emirates has come into focus for intense interest among affluent investors and is expected to see the highest net influx of wealthy individuals globally in 2022, with a 4,000 forecast.

That would represent an increase of 208 percent compared to 2019’s net inflow of 1,300 and one of its largest ever.

Individual inflows with high net worth are also increasing in Israel, with a figure of 2,500 for 2022, an increase of 79 percent since 2019.

Long-term high-performing Australia consistently attracts a large number of people with high net worth. More than $ 80,000 millionaires have moved to the country in the last 20 years. In 2022, the net inflow is expected to be 3,500 – the second highest globally.

Neighboring New Zealand is expected to have a net inflow of 800 wealthy individuals in 2022, and Asia’s main hub for prosperity, Singapore, continues to attract millionaires, with a net inflow of 2,800 expected, an increase of 87 percent over 2019.

Wealth emigration is starting to hurt in China, with net outflows of 10,000 wealthy individuals expected in 2022.

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