Dubai / New Delhi, June 25 : India's wealthy are increasingly setting their sights on a new address: the United Arab Emirates (UAE). This shift has seen Dubai, Abu Dhabi, and other emirates emerge as a favored destination for the nation's ultra-rich. But what exactly is drawing India's super rich to the UAE?

One key factor is the UAE's lucrative tax regime. Unlike India's income and capital gains taxes, the UAE offers a near-tax-free environment.

This translates to significant financial benefits for wealthy individuals and families looking to optimize their wealth management strategies.

Beyond just taxes, the UAE presents a business-friendly ecosystem. Streamlined business setup processes, free trade zones, and a focus on innovation make it fertile ground for entrepreneurs and established businesses alike.

This environment allows them to expand their ventures, explore new markets, and attract global investment.  Even a report by Henley & Partners, an international investment migration advisory firm claims that UAE has become the most preferred country for the ultra-wealthy.  The report highlighted that around 4,300 millionaires are expected to leave India in 2024, with the majority of them choosing to relocate to Dubai in the UAE.  "India continues to lose large numbers of millionaires, especially to the UAE.

However, in our view, these outflows are not particularly concerning as India continues to produce far more new HNWIs than it loses to emigration. Furthermore, the bulk of the millionaires who leave India tend to retain business interests and second homes in the country, which is a positive sign," said the report.