#UHNW individuals are leaving Dubai for Switzerland

From Dubai to Switzerland

In recent years, #Dubai has been a magnet for global wealth, but recent geopolitical tensions have triggered a shift of capital and ultra-high-net-worth individuals (#UHNW) towards #Switzerland.

Although the total number of millionaires residing in Dubai remains among the highest in the world (estimated at around 9,800 by 2025), there is a counter-trend of ‘flight’ towards #Switzerland due to regional instability.

* Switzerland ranks fourth globally among preferred destinations. Although the exact number of resident millionaires is periodically updated by studies such as the UBS Global Wealth Report, the most recent data indicate a strong and consistent presence of significant wealth, with a rising trend in the number of billionaires.

* Swiss banks have recorded an increase of around 40% in deposits from private individuals in the United Arab Emirates over the last three years, with forecasts of further inflows amounting to tens of billions of dollars

The move from Dubai to Switzerland is driven primarily by the search for ‘maximum security’ in the face of growing risks in the Gulf.

* Geopolitical Security: Recent conflicts and direct threats (such as drone attacks on the Burj Al Arab and airport disruptions) have undermined Dubai’s reputation as a ‘safe haven’.

* Institutional Stability: Switzerland offers centuries-old neutrality, a robust legal framework and political stability that Gulf monarchies struggle to guarantee in times of war.

* Tax Optimisation: Although Dubai is known for its lack of income tax, Switzerland attracts high net worth individuals through its lump-sum taxation regime, which allows tax liability to be negotiated based on lifestyle rather than global income.

* Risk Diversification: Many UHNW families are adopting a ‘diversified residency’ strategy, maintaining bases in both Dubai and Switzerland so as not to be dependent on a single jurisdiction.

Individuals relocating from Dubai tend to concentrate in specific cantons known for their tax advantages and quality of life:

* Zurich and Geneva: Global financial centres for wealth management

* Zug and Lugano: Renowned for competitive tax rates and privacy