Attributed by: Nicholas Wright, Head of Institutional Sales, Saxo Bank

Dubai’s winning combination of UK-inspired regulation, investor-friendly tax policies, and a strategic time-zone advantage is propelling the city to the forefront of global wealth destinations, attracting a wave of new millionaires from traditional centres like London.

Its evolution from a regional trading outpost to a global financial centre has been one of the defining economic success stories of the past two decades. Once viewed primarily as a gateway to the Gulf, the city is now positioning itself as a trusted bridge between East and West, a place where capital, talent, and innovation converge.

This transformation is intentional, driven by a powerful combination of regulatory trust, tax advantages, and a strategic location. These combined “push-and-pull” forces are attracting a fresh wave of global investment and high-net-worth migration, solidifying Dubai’s role in the world’s financial architecture.

 Building Global Confidence: Regulation that Mirrors London

A critical pillar of Dubai’s ascent has been the credibility of its regulatory ecosystem, anchored by the Dubai Financial Services Authority (DFSA). The DFSA’s adoption of a UK-style, principles-based framework has created a familiar and trusted environment for international investors, particularly those from established markets such as London, Zurich, and Hong Kong.

By aligning with global standards set by IOSCO and Basel, the DFSA has helped ensure that Dubai’s financial regulations meet the expectations of international institutions. Importantly, the city’s common-law legal framework, applied through the DIFC Courts, offers predictability and transparency, qualities that distinguish Dubai from many emerging markets.

Aligning with internationally recognised best practices attracts global firms that value strong governance and reassures private investors that Dubai’s rapid growth is built on solid foundations. In doing so, it turns the city’s financial free zones, particularly DIFC, into a natural extension of the world’s major financial capitals.

Global Tax Shifts and the Migration of Wealth

While regulation provides the foundation of trust, global tax realignments are now accelerating Dubai’s growth. Across Europe and the UK, tightening fiscal regimes and increased scrutiny of offshore structures are prompting many high-net-worth individuals (HNWIs) and family offices to reassess their base of operations.

The UK’s reform of the long-standing Non-Domiciled (“Non-Dom”) tax regime, combined with higher tax rates and stricter reporting obligations, has diminished London’s appeal as a haven for global wealth. Resulting in a clear outflow of capital, the UK is forecast to lose around 16,500 millionaires in 2025, according to Henley & Partners, the largest net outflow recorded by any country in over a decade.

In contrast, Dubai has emerged as one of the world’s leading destinations for mobile wealth. Over the past decade, the number of millionaires residing in the city has doubled. According to The Rise of Dubai study, the emirate is home to 86,000 millionaires, 251 centi-millionaires, and 23 billionaires, as of June 2025.

This shift represents a classic case of push and pull: mature markets are tightening, while dynamic jurisdictions like Dubai combine transparency with competitiveness. The UAE’s own fiscal evolution,  including the introduction of a federal corporate tax aligned with OECD standards, has enhanced credibility while preserving the hallmark advantages of no personal income tax and a stable, predictable business environment.

At the same time, Dubai’s establishment of family wealth centres, along with trust and foundation structures in the DIFC, is attracting international family offices that value both strong global compliance and flexible local regulations. The DIFC now accommodates over 120 family offices and more than 800 family-related entities, together managing an estimated US$1.2 trillion in assets.

 Dubai’s Enduring Wealth Base and Private Banking Strength

Long before it became a magnet for global capital, Dubai was already a regional hub for private banking, buoyed by decades of oil wealth and the emergence of HNW and UHNW individuals across the Gulf. Historically, much of that wealth was parked offshore in jurisdictions such as Switzerland and London.

Today, that wealth is increasingly being repatriated and managed locally, as the DIFC and DFSA frameworks give investors confidence that their capital is governed under international standards. Making this city a magnet for new millionaires, surpassing other global hubs in attracting mobile wealth.

 Population Growth and the Rise of the Mass Affluent

Dubai’s population surged past 4 million residents in 2025, up from around 1.9 million in 2011. This rapid demographic expansion, fueled by a strong influx of capital, added more than 223,000 new residents in just one year, marking the fastest growth rate in the city’s history.

A significant portion of this growth is concentrated within the affluent and mass-affluent segments, creating strong potential for the next generation of digital and hybrid wealth managers. As professionals, entrepreneurs, and global citizens increasingly choose Dubai as their base, the city’s financial ecosystem is expanding beyond traditional private banking into scalable, tech-enabled wealth management platforms.

The Next Chapter: Sustaining Momentum

As Dubai’s profile grows, so too does the need to maintain the balance between openness and oversight. The DFSA has already demonstrated its adaptability, from developing frameworks for digital assets and fintech innovation to integrating ESG principles into its supervisory approach.

Such responsiveness will be vital as global finance enters a new era shaped by digitalisation, sustainability, and shifting investor expectations. If Dubai can continue to combine rigorous regulation with pragmatic innovation, it will not only retain its current momentum but also strengthen its claim as the most trusted financial hub between London and Singapore.

By Keith Redding, Chief Revenue Officer, Universal Banking at Finastra

Reimagining banking in the Middle East is redefining how financial institutions grow, engage, and innovate. As digital transformation accelerates, banks must evolve to deliver seamless, secure, and personalized experiences that meet rising customer expectations.

Across the UAE and Saudi Arabia, adoption of digital banking continues to surge. According to Capco’s “Bank of the Future” survey, 89% of UAE customers have become more confident using mobile banking services, while 83% now access them primarily via mobile apps. Similarly, Saudi Arabia expects online banking penetration to grow by over 16 percentage points between 2024 and 2029, underscoring the region’s momentum toward smarter, connected financial ecosystems.

Reimagining Banking Middle East with Data and Analytics

Data has become the new cornerstone of success. Through AI, analytics, and machine learning, banks can decode customer behaviour and anticipate needs more precisely than ever. As a result, they can personalize offerings, boost retention, and reduce friction across the customer journey.

A clear example of this transformation is Riyad Bank’s Centre of Intelligence (COI) — Saudi Arabia’s first AI-focused banking hub — which enhances operational efficiency while driving innovation in customer engagement.

By reimagining banking in the Middle East with data-driven strategies, institutions can align financial products with real-time insights and deliver experiences that feel intuitive, predictive, and human.

Hyper-Personalization and Omnichannel Growth

Customers today interact through multiple touchpoints — mobile apps, websites, and physical branches — expecting consistent, personalized service. Therefore, delivering a seamless omnichannel experience has become the foundation of loyalty.

In the UAE, 70% of consumers are willing to share personal data for tailored experiences, while in Saudi Arabia, the number climbs to 71%. This readiness empowers banks to use analytics ethically and transparently, transforming everyday banking into relationship-driven engagement.

Digital Sales Outreach and New Engagement Models

Digital outreach is not an option — it’s essential. Mobile-first strategies, social media engagement, and AI-driven marketing are now central to how banks connect with customers.

Take D360 Bank, one of Saudi Arabia’s first digital-only institutions. It attracted over 600,000 customers within two months of launch, proving that mobile-first banking can scale fast when powered by user-centric design.

Ecosystem Collaboration: Powering Innovation in the Middle East

Another major force reimagining banking in the Middle East is ecosystem collaboration. By partnering with fintechs, big tech firms, and infrastructure providers, banks can expand capabilities faster than ever before.

Globally, fintech startups have surged from 12,000 in 2020 to nearly 30,000 in 2024. The Dubai International Financial Centre (DIFC) now hosts over 1,000 fintech firms, while Saudi Arabia’s fintech ecosystem has more than doubled within a year. This growth underscores the importance of collaboration as a driver of agility and innovation.

Such partnerships empower banks to deploy advanced solutions like AI-powered risk scoring, embedded finance, and real-time payments — all while ensuring compliance with regional and global standards.

Looking Ahead: Building a Future-Ready Financial Ecosystem

The future of reimagining banking in the Middle East lies in intelligent, insight-led operations. Automated recommendations, predictive support, and AI-driven decision-making will soon define how banks engage customers.

Forward-thinking institutions in the UAE are already adopting AI-assisted frameworks that streamline service and elevate the customer experience. In Saudi Arabia, agile innovation models like Alinma Bank’s digital factory accelerate product launches and improve customer alignment.

As the region continues to evolve, banks that combine innovation, collaboration, and customer-centric transformation will achieve sustainable growth and long-term market leadership.

Check this out UAE Crypto Regulation Sets Global Blueprint

By Karl Naïm, Group Chief Commercial Officer, XBTO

The UAE has evolved from a crypto sandbox to a global model for digital asset regulation, demonstrating how policy clarity, investor protection, and innovation can coexist. Once a regional testing ground, the nation now leads in tokenization, blockchain adoption, and institutional-grade compliance — setting a framework others are eager to emulate.

Institutions Move from Observation to Adoption

Over the last two years, institutional investors — from sovereign funds to global asset managers — have shifted from cautious exploration to structured allocations in digital assets. Yet, these investors only engage when they see robust regulatory infrastructure.
Here, UAE crypto regulation stands apart. While the U.S. remains divided over jurisdictional control and Europe’s MiCA awaits full rollout, the UAE offers a complete ecosystem where policy meets execution. This maturity has transformed the country into a trusted base for large-scale blockchain initiatives.

Two Regulatory Paths, One Unified Objective

The UAE’s approach balances innovation and oversight through two distinct yet aligned regulatory arms.

• Abu Dhabi Global Market (ADGM): Through the Financial Services Regulatory Authority (FSRA), it licenses custody, tokenization, and brokerage activities under strict governance criteria.
• Dubai’s Virtual Assets Regulatory Authority (VARA): Instead of classifying asset types, VARA regulates activities, giving firms flexibility to innovate without restarting their licensing process.

This dual model ensures both stability and adaptability — a rare equilibrium that reinforces confidence among enterprises and investors.

Tokenization Moves from Pilot to Production

In 2023, Neovision and Realize launched one of the first tokenized U.S. Treasury funds under ADGM’s oversight, now part of a market valued at over $2.4 billion. Soon after, HSBC piloted tokenized gold settlement in the Emirates, leveraging the UAE’s mature legal and technical infrastructure.
Unlike most markets, where tokenization remains conceptual, the UAE has operationalized it across corporate bonds, commodities, and private equity. This tangible progress makes UAE crypto regulation a benchmark for turning blockchain theory into enterprise-scale reality.

Proven Resilience Through Market Turbulence

The UAE’s frameworks were tested during the 2022 digital asset downturn. While some regions froze licensing or enforcement, VARA introduced stricter custodial and marketing rules while continuing to issue licenses transparently.
In 2024, both VARA and ADGM demonstrated accountability by penalizing unlicensed operators and enforcing compliance — signaling a regulatory environment that values both innovation and discipline.

Blockchain Beyond Finance

Beyond crypto trading and tokenization, the UAE is using blockchain to drive cross-sector innovation.

• Ras Al Khaimah has built a dedicated Web3 zone for decentralized applications.
• Sharjah is piloting blockchain in public services, from identity to supply chain tracking.
  This diversification proves the national model’s flexibility and depth, blending economic and civic value under a unified UAE crypto regulation framework.

Geography Meets Governance

Situated between Asia and Europe, the UAE benefits from time-zone overlap, U.S. dollar settlement, and investor-friendly tax structures. Yet its real advantage lies in policy precision. Since 2023, VARA has issued frequent updates and consultative papers, responding dynamically to industry input.
Following its removal from the FATF grey list in 2024, the UAE has accelerated compliance reforms faster than most peers, turning global scrutiny into strategic progress.

A Replicable Blueprint for the World

While the U.S. debates regulatory ownership and Europe await MiCA’s maturity, the UAE has implemented a live, multi-emirate framework. It balances openness with oversight — a model now studied by global policymakers.
For institutional investors, the question has shifted from if to were. Increasingly, the answer is clear: the UAE — where crypto regulation is no longer an experiment, but the emerging global standard.

Read our previous post, UAE Depreciation Rules Boost Real Estate Investment