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Dubai has made significant strides, now ranking as the seventh most expensive city for high-net-worth individuals (HNWIs) globally, according to Julius Baer’s Global Wealth and Lifestyle Report 2025. This marks a noteworthy rise from its previous position of 12th last year.
This improvement, the most substantial in the Europe, Middle East, and Africa (EMEA) region, occurred despite a minor increase of only 1 percent in average local currency prices, as detailed in the report from Julius Baer.
Global Wealth and Lifestyle Changes
The report, released during a period of diminishing global consumption and escalating geopolitical issues, points to a shift in HNWIs’ priorities, focusing more on longevity—both physical and financial.
On a global scale, the Julius Baer Lifestyle Index revealed a remarkable 2 percent reduction in prices when calculated in US dollar terms. Goods experienced a decline of 3.4 percent, while services saw a slight decrease of 0.2 percent.
Christian Gattiker, head of Research at Julius Baer, shared, “Given the ongoing uncertainty, trade tensions, and tariffs, our findings represent a snapshot ‘before’ the current circumstances, and the next year’s Global Wealth and Lifestyle Report will likely offer an intriguing ‘after’ perspective.”
Competition within the city rankings remains fierce, with Singapore maintaining its title as the most expensive city globally for HNWIs, followed by London, which has risen to second place, and Hong Kong taking third.
Strong Performance of EMEA Cities
In the EMEA region, cities now constitute over half of the global top ten list, with London at the forefront, moving up to second place globally. Both Monaco and Zurich advanced one rank to fourth and fifth respectively. Dubai’s ascent by five positions to seventh reinforces its status as a formidable competitor among traditional wealth centers.
Milan and Frankfurt remained stable in their rankings, while Paris experienced a slight decline. Johannesburg stayed at the bottom of the list, even with some price hikes.
Overall, price trends in EMEA have been moderate, with local currency prices stable or even receding in cities like Zurich.
The most significant price increase in the EMEA region was noted in Paris, where travel and hospitality costs surged, leading to a 5 percent rise year-on-year. In London, private education expenses also spiked, driven by recent legislative changes.
Dubai’s Growth as an HNWI Hub
The cost of living for affluent residents in Dubai has risen notably, particularly in significant expense categories. Car prices surged by 13 percent, and residential property values rose by 17 percent. This trend aligns with a remarkable growth trajectory for Dubai’s real estate market in 2024, seeing property sales values increase by 27 percent compared to the previous year.
This growth underscores Dubai’s growing appeal as a long-term haven for HNWIs and their families, many of whom have already settled in the emirate.
The report emphasizes a steady influx of millionaires to Dubai, a trend that accelerated during the pandemic and is expected to outpace relocations to other nations.
A report from Henley & Partners estimates that the number of millionaires residing in Dubai has skyrocketed by 102 percent over the last decade due to a rise in residency applications.
Dubai’s allure is further enhanced by its attractive tax policies, high quality of life, and innovative residency schemes including the golden and entrepreneur visas.
Additionally, its standing as a top global financial hub is evident, with the Dubai International Financial Centre (DIFC) reporting a 25 percent increase in the number of active companies there during 2024.
Middle Eastern Luxury and Economic Strength
HNWIs in the Middle East maintain a robust interest in luxury experiences and goods, particularly in upscale hotels, high-end menswear, and gourmet dining. Travel for business and leisure is thriving in the area, with 53 percent and 47 percent of respondents indicating increased activities in these sectors, respectively.
Rishabh Saksena, co-head of Global Asset Class Specialists at Julius Baer, highlighted the resilience of GCC economies amidst global economic uncertainty. “While growth tied to oil has slowed, the broader outlook for 2025 remains positive, sustained by strong non-oil performance, solid financial reserves, and ongoing economic reform efforts,” he stated.
In the UAE, the non-oil economy continues to show strength, with Abu Dhabi’s non-oil sector expanding by 8.6 percent in 2024 and contributing over 55 percent to GDP. Dubai leads the region’s recovery in services and tourism, with visitor numbers expected to surpass 22 million by 2025.
Dubai Airports, accommodating 92.3 million passengers in 2024, retains its title as the busiest airport globally for international travel, with plans for an extensive upgrade to the city’s second airport underway.
The emergence of financial hubs like DIFC and Abu Dhabi Global Market (ADGM) underlines the UAE’s growing significance as a regional investment and finance center.
These centers are increasingly leading in innovation, particularly in digital assets, fintech, and artificial intelligence, establishing new foundations for diversified, future-ready economies.
The region is also witnessing a notable influx of international talent and investment, as the GCC—especially the UAE—becomes recognized as a secure and stable environment for families and wealth preservation, backed by long-term residency initiatives, advanced healthcare, superior education, and a business-friendly climate.
Overall, the report indicates that the Middle East, spearheaded by the GCC, is poised to sustain strong financial and account positions despite external challenges. Inflation in the region remains among the lowest compared to other emerging markets, while proactive approaches to innovation, infrastructure, and investor trust solidify its appeal as a crucial area for growth in an increasingly divided global economy.
Shifting Focus: Longevity and Unique Experiences
The findings from the Julius Baer lifestyle survey highlight a nearly universal emphasis on longevity among HNWIs, with 87 percent (in North America) to 100 percent (in the Asia-Pacific region) actively pursuing ways to extend their lives.
Financial longevity has also become a significant concern. While wealth creation stays the primary focus globally, wealth preservation has started to gain traction, especially in Europe and North America.
Conversely, HNWIs in regions like APAC, the Middle East, and Latin America are more inclined to embrace higher-risk investments and diversify their portfolios, with real estate (18 percent) and equities (13 percent) ranking as favored asset classes in the Middle East.
The report ultimately confirms a shift away from material consumption towards experiential pursuits, with strong demand for gourmet dining, exclusive travel, and personalized experiences. This illustrates a broader transformation in the perception of luxury among HNWIs, increasingly prioritizing lifestyle, wellness, and meaningful experiences over mere possessions.