Dubai has jumped five places to rank 7th globally and 1st in the Middle East for attracting high-net-worth individuals (HNWIs), according to the Julius Baer Global Wealth and Lifestyle Report 2025. Despite a modest 1% rise in local currency prices, the city is now a top contender alongside traditional wealth centers like London, Monaco, and Zurich.
The report highlights a global shift in the priorities of wealthy individuals amid declining consumption, geopolitical uncertainty, and looming trade disputes. Even before new U.S. tariffs were announced, data showed a clear shift toward cautious spending and long-term planning.
Over half of the world’s top 10 most expensive cities are now in Europe, the Middle East, and Africa (EMEA). London rose to 2nd globally, with Monaco and Zurich taking 4th and 5th. Dubai’s leap to 7th underscores its rising competitiveness. Meanwhile, Paris dropped slightly, and Johannesburg remains last despite local price increases.
For the first time, the Julius Baer index fell 2% in USD terms. Service prices dipped by 0.2% and goods by 3.4%, reflecting slowing demand.
In the Middle East, wealthy residents showed strong demand for luxury hotels, men’s fashion, women’s handbags, fine dining, and smartphones. Price shifts remained stable across EMEA, with Paris seeing the steepest increase (+5%) due to rising travel and hospitality costs. London’s private education costs also rose due to VAT changes.
Dubai continues to outperform, fueled by growth in tourism, trade, and finance. Luxury living costs rose notably—cars by 13% and residential property by 17%. Real estate sales surged 27% in 2024, reinforcing Dubai’s appeal as a long-term home for global millionaires.
Since COVID-19, Dubai has seen the world’s highest net inflow of millionaires. Henley & Partners reported a 102% increase in millionaire residents over the past decade, driven by favorable tax policies, high quality of life, golden visas, and the city’s global connectivity.
Dubai is implementing its D33 economic agenda to double its economy by 2033. DIFC recorded 25% growth in active companies in 2024. Dubai is also investing in sustainable infrastructure, senior wellness services, and expanding airport capacity, with DXB handling a record 92.3 million passengers in 2024.
According to Julius Baer, GCC economies remain resilient. Despite slower oil growth, strong non-oil sectors, fiscal buffers, and reform momentum support a positive 2025 outlook. The UAE leads in economic diversification, with Abu Dhabi’s non-oil GDP growing 8.6% in 2024. Dubai welcomed over 22 million visitors in 2025.
Financial centers like DIFC and ADGM are gaining global prominence, especially in digital assets, fintech, and AI. The UAE is attracting global capital and talent, positioning itself as a safe and stable haven for families and wealth preservation.
Despite global headwinds, the region is expected to maintain strong current account surpluses and low inflation. Its proactive stance on innovation and infrastructure makes it a key global growth destination.
Technology prices dropped the most (-22.6%), especially MacBooks. Business-class airfares saw the highest jump (+18.2%) due to limited supply and strong demand. Private school fees rose 5.1%, particularly in London, while luxury watch prices edged up 5.6% due to demand for rare models.
Julius Baer’s 2025 lifestyle survey shows a growing global interest in longevity. Up to 100% of respondents in Asia-Pacific are taking steps—from healthy lifestyles to advanced therapies like gene treatment—to live longer. Long-term financial planning is also gaining importance.
While wealth creation remains a top priority, preserving it now ranks higher, especially in Europe and North America. In contrast, HNWIs in the Middle East, Asia, and Latin America continue to take more risks and align investments with personal values.
Spending on luxury goods is down, but demand for curated experiences is rising. HNWIs now prefer fine dining, exclusive travel, and bespoke services, signaling a broader shift from material goods to meaningful lifestyle experiences.