Dubai top pick for ultra-wealthy
City scores for its investment potential and connectivity
For the world's ultra-high net worth individuals, Dubai is the only city within the Middle East that matters for investment and connectivity, according to the annual Knight Frank Wealth Report.
Knight Frank's City Wealth Index identifies the cities that matter to the ultra-wealthy by analysing four critical measures of current wealth, investment, connectivity and future wealth. As per this ranking of the most preferred cities of the ultra rich, Dubai is placed 16th, just behind Seoul and Taipei and ahead of Geneva and Zurich.
Ultra-high net worth individuals (UHNWIs) are those with $30 million or more in net assets.
London emerges just ahead of New York overall with top scores for both investment and connectivity; while New York leads on both current and future wealth.
"Dubai's strategic geographical location, modern and sophisticated infrastructure and business-friendly regulations make it a popular destination for people to live in, invest and grow their wealth," said Dana Salbak, associate partner and head of Mena research at Knight Frank.
"Looking ahead, and with the continued investment into logistics and infrastructure, namely Emirates Airlines, Dubai International and Al Maktoum International Airports, we expect the city to jump up the connectivity rankings," said Salbak.
"Meanwhile, the availability of more quality investment stock, particularly in the commercial and alternative sector [education and healthcare], is expected to drive futher investments into the city," she added.
Globally, London has beaten New York as the most important city for UHNWIs.
Liam Bailey, head of global research at Knight Frank, said: "The global economic powerhouses of London and New York dominate the rankings due to their well-established lead over other cities. However looking ahead, future wealth concentrations and investment firepower look set to be dominated by a tussle for supremacy between Asian and North American cities."
This year's Wealth Report identifies five of the best neighbourhoods around the world poised to outperform in some key categories.
Notable development to infrastructure has cemented Dubai South as the emirate's flagship urban project, with the highly anticipated first two residential communities due to complete in 2019.
"Home to the Expo 2020 site, Dubai South benefits from on-going government spending on infrastructure projects, notably the expansion of Al Maktoum International Airport and the Dubai Metro's Red Line [Route 2020], which once complete, will add to the potential capital value growth in the location," said Salbak.
According to the report, the global ultra-wealthy population grew in 2016, despite political and economic uncertainty. The number of UHNWIs rose by 6,340 in 2016, taking the total to 193,490, according to data. This growth reverses the decline of three per cent seen in 2015.
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