UK suffers historic brain drain, wealth exodus as UAE passport power rises

The trend coincides with a sharp decline in British global mobility power, with the UK passport dropping from first place in 2015 to fifth position in 2025, according to the latest Henley Passport Index. The drop reflects not an absolute loss of access but rather a failure to gain new visa-free destinations at the pace of global competitors.

The UAE, meanwhile, has achieved a historic milestone as the first Arab nation to enter the top 10 most powerful passports globally, benefiting from consistent diplomatic efforts and bilateral agreements that have fuelled its rise over the past decade.

Take a look at the countries that have climbed the highest in the Henley Passport Index rankings over the past decade, as well as those that have fallen most sharply over that period.https://t.co/6zuQhdfKJB pic.twitter.com/fav2RDMIHb

— Henley & Partners (@HenleyPartners) January 13, 2025

“When you speak to people on the ground who are wealthy, who own businesses, everybody’s just shaking their head. There’s no positivity, there’s no pull up the sleeves, there’s no bullish sort of approach,” Philippe Amarante, Head of Middle East at Henley & Partners, told Arabian Business.

Diplomatic gains, mounting pressures

While countries like Japan, South Korea, and Australia have secured visa-free access to China following Beijing’s recent tourism push, the UK has yet to be included in this expansion, contributing to its relative decline in passport rankings.

The UAE’s diplomatic success stands in stark contrast. “The UAE’s consistent efforts have enabled them to enjoy the biggest rise over 10 years,” noted Dr. Juerg Steffen, CEO of Henley & Partners.

Dubai now hosts over 200 centi-millionaires, placing it among the world’s top 15 cities for ultra-high-net-worth residents, according to Henley & Partners’ latest wealth report.

The exodus appears to be accelerating as wealthy individuals grapple with multiple challenges. Industry experts point to several key factors, including potential tax changes under Labour, post-Brexit regulatory uncertainty, and growing concerns about public safety in major cities.

Aaron McAuley, a Paraplanner at GSB, noted that recent policy shifts have particularly rattled wealthy Britons.

“The current UK economic landscape, marked by tax policy changes such as the end of the non-dom regime, increased capital gains taxes, and the inclusion of pensions in estates from 2027, has led many HNWIs to reassess their wealth management strategies,” he explained.

“The UK has witnessed a net outflow of millionaires in recent years,” McAuley added. “This outflow contrasts starkly with the pre-2017 era when the UK welcomed large numbers of wealthy international families.”

Jeffrey Hensler, CEO of Passport Legacy, attributes the UAE’s growing appeal to its unique combination of advantages. “The UAE has very little competition,” he said.

“Find another place that is this safe, where [corporate] tax is now 9 per cent. That’s a very fair price to pay to live in such a country.”

Wealth, talent exodus looms

The implications for London’s financial sector could be far-reaching. The capital, which has historically competed with New York and Hong Kong for global financial supremacy, faces mounting challenges in retaining both wealth and talent.

According to Henley & Partners’ latest projections, 2025 will witness the most significant wealth migration wave ever documented, with 142,000 high-net-worth individuals expected to relocate globally. The firm reports that US nationals currently constitute the largest cohort of applicants for alternative residence and citizenship, accounting for 21 per cent of all investment migration program applications received in 2024.

“The identity of the great United Kingdom is suffering,” Amarante said, noting that recent developments in international relations have further complicated Britain’s position on the global stage.

For Britain, which has seen its passport holders’ visa-free access drop to 190 destinations in 2025, the challenge now lies in stemming this outflow while navigating complex political and economic transitions.

From GSB’s perspective, the UAE has made impressive strides in positioning itself as a wealth management hub for British expatriates. “While Switzerland and Singapore have long been favoured for their established financial services and privacy laws, the UAE has rapidly adapted by strengthening its regulatory frameworks and embracing financial innovation,” McAuley noted.

The exodus trend appears particularly pronounced among business owners and entrepreneurs. Amarante highlighted deeper structural issues facing the UK.

“Since the UK has left the European Union, the economy is going down. Number two, Labour government now means very likely much higher tax for any wealthy person. Number three, anti-migration sentiment affecting people with ideas, as well as asylum seekers,” Amarante said.

These concerns are compounded by what Hensler describes as increasing safety concerns in major UK cities. “If you cannot even let your kids anymore go to school without protection – this is not what Europe was about 20 years ago,” he explained, adding that many wealthy families are prioritising quality of life alongside tax considerations.

The UAE’s strengthening passport power has become a key factor in influencing investment decisions. “This initiative not only offers HNWIs and their families long-term residency but also enhances their global mobility, an essential consideration for individuals managing international investments and assets,” McAuley said.

According to the latest Henley Global Mobility Report 2025, the impact of this wealth migration extends beyond immediate financial implications. Dr. Juerg Steffen, CEO of Henley & Partners, reported that the firm has seen unprecedented interest in investment migration programs, with the trend “reflecting fundamental changes in how affluent individuals are mitigating risks and creating opportunities in an increasingly unstable and polarized world.”