The pandemic put retirement plans on hold. But the return of global travel has sparked a rise in people looking to move abroad to pursue a better life.
During the last two years, there was a reverse in global travel as many expats were looking to return home and repatriate with a fear of getting stuck in their country of residence. There was also a fall in jobs and many people had to retreat to Britain to feel more financially comfortable.
The UAE was one of expats’ favourite places to move to and the pandemic has not changed this; in fact, covid may have highlighted to many prospective expats that they want to live in a more exotic and luxurious place.
The UAE government has bolstered the immigration regime with the launch of several visas, including the green visa and the freelancer visa. Now, with these in effect and the impact of Expo 2020, the UAE is set to thrive.
International Adviser spoke with Prosperity, RL360, The Fry Group and ATC Tax to understand how much impact the re-established travel industry has had on the wealth management sector.
Picking up
Greg Stockton, chief executive of Prosperity, said: “Demand has increased in the last few months as a growing number of international investors and expats are again looking to move to the UAE as restrictions ease further around the world.
“It’s surprising also how many have already moved here without jobs with a view to getting work once here. I guess they know, as companies start to expand again in the UAE, they are going to need staff quickly. That said, business has been steady throughout the pandemic as the expats already here require specialist cross-border financial advice.”
Stuart Shilcock, head of sales in the Middle East for RL360, said: “While we haven’t seen much movement into the UAE because of the continuing covid restrictions, there are signs of recovery on the horizon.
“And the airlines are on the road to recovery too. Emirates said it will be back to pre-covid levels in 2025. The staff to ensure this happens – pilots, engineers, flight crew – will predominantly come from Europe and North America and will be based in the UAE.”
Finn Houlihan, managing director at ATC Tax, added: “It has increased significantly, we’re getting two types of main enquiry. People who are looking to return to the UAE due to been made previously redundant, like Emirates pilots, but are now being recalled to the previous roles, and new movers.
“The new movers seem to be more mixed this time in terms of background, as the visa process is much easier and the UAE government making [the country] generally more attractive place to live and work. People put life and plans on hold during covid, and these same people are now pressing ahead with their plans, in addition to the normal level of enquiries from potential movers seems to be moving back to normal levels.”
Global attraction
The UAE population is made up of over 88% expats. Most expats in the UAE are from India (27%) and Pakistan (13%), but the country is a hotspot for Brits as well.
So, what other places, besides the UK, are expats looking to move to the UAE coming from?
Stockton said: “I think given the issues that South Africa is currently facing, there seems to be a lot of interest from this market. South Africans can now, for the first time in a long-time, travel direct to the UAE, so it will be interesting to see how busy those flights now become, and for how many people on board it’s a fact-finding mission to see if they would like to move here.”
Stuart McCulloch, market head of The Fry Group Middle East, added: “There has, and I believe always will be, a large influx of non-resident Indian (NRI) expats, and they still make up the largest demographic here. We are seeing more Brits coming too and this may, in part, be to do with the recent trade agreements between the UAE and the UK.”
Houlihan said: “We mainly deal with Brits due to our expatriate tax specialism and focus. However, we notice from talking and dealing with new enquiries and existing clients that Dubai still remains a popular international melting pot.”
Need for more firms?
With more people looking to head to the UAE, the demand for financial advice and wealth management services has never been greater.
This means that, surely, there is a chance that competition is on the horizon for the firms already based in the country.
Prosperity’s Stockton said: “It’s becoming more difficult for new companies to gain licences due to the new rules.
“The regulator appears to only want companies that are well-backed and well-resourced. As such, I think we’ll see more mergers across the UAE rather than more new firms.”
McCulloch added: “There is a strong enough market to service expats here, and in the financial planning industry it is good to see that expats are now doing more due diligence on firms and looking at the firms credentials, quality of the offering and value for money.”
ATC Tax’s Houlihan said: “For wealth management, there remains fantastic opportunities, but to be attractive, wealth management propositions need to be fee-based, totally transparent, clean and offer immediate liquidity to enable easier restructuring when expats circumstances change quickly, like we’ve seen from the recent pandemic.”
Future
The future is bright for the UAE and its wealth management sector. As countries continue to exit lockdown and the world starts to deal with the pandemic, more individuals and families will see the UAE as an ideal hub for their work or retirement.
This means that advice companies should expect a constant flow of clients.
Stockton said: “The future of the market is looking stronger than ever. Recent visa rule changes mean that the UAE is no longer just a place where people come to make money before moving ‘back home’.
“Instead, more than ever, and in higher numbers, expats already here will be looking to stay for the long-term; and the developments will also encourage others not here yet to make the move. These individuals will need financial advice to make the most of their expat status and create, build and protect their wealth.”
The Fry Group’s McCulloch added: “There absolutely will always be a future in the expat market in the UAE. It is clear that the government here wants to attract the best people and thought leadership from across the world. If changes needed to be made to ensure that happens, then I’m sure they would do what is required to continue the success story of the UAE.”
