Some 97% of UAE expats believe living abroad has accelerated their financial freedom and 98% thinking it will enable them to retire earlier. This is according to a new report by St. James's Place Middle East.
The report, titled Money on the Move, offers a glimpse into the evolving lives of affluent and high-net-worth expats in the UAE – from the financial opportunities of living overseas and how long they plan to stay, to the increasingly complex needs of building wealth and planning a future across borders.
Fast-tracked financial freedom and retirement
Almost all respondents report earning (96%) and saving (97%) more in the UAE than they would in their home country, with almost half (48%) earning and saving at least 25% more. Among those whose discretionary spending has increased, 88% are also putting more towards savings and investments.
That financial uplift is helping many bring key life goals forward. Almost two-thirds (64%) believe achieving financial freedom would have taken at least five years longer had they never lived overseas, while 70% believe living abroad will enable them to retire at least three years earlier.
Beyond financial opportunity, the UAE’s wider proposition also matters. Taxation policies, residency and visa frameworks, and access to education and healthcare are among the leading considerations shaping where expats choose to live, each cited by 92% of respondents.
Strong earning and saving potential
With the favourable environment and strong earning and saving potential, many expats in the UAE are extending their time abroad beyond their original plans. More than half (55%) have stayed overseas longer than expected, while 78% expect to live abroad for at least eight years. Around six in 10 (59%) expect to return home eventually, but not before retirement.
Daniel George, Head of Business – Middle East at St. James’s Place, said: “For many expats, the UAE offers significant opportunities to advance their careers, build wealth and reach financial goals sooner. As their time abroad extends, their financial lives can also become more international, with assets and future plans spanning multiple countries.
“That makes decisions around investment, tax, retirement and succession increasingly interconnected – and long-term, cross-border planning increasingly important.”
Longer lives abroad bring greater financial complexity
As expats spend longer overseas, managing wealth across borders can become more challenging. Almost nine in 10 (89%) cite the high cost of living as a barrier to effective wealth management, while 86% point to cross-border regulations and taxes, currency volatility and limited access to preferred investment products. A lack of time is another challenge, cited by 85%.
Those financial decisions are also being made against a changing global backdrop. Around four in 10 expats are highly concerned about rising global inflation and interest rate shifts (44%), while changes affecting residency or work rights and local or cross-border tax regulations are major concerns for 41%.
Navigating this complexity requires financial knowledge, yet only 27% of UAE expats consider themselves highly financially literate. Those with high financial literacy are more likely to hold diversified portfolios across different asset classes (43% vs 29%), feel prepared for wealth succession (68% vs 28%) and have sought advice in both their home and host markets (70% vs 28%). They are also more likely to say their financial position has improved while living in the UAE (82% vs 67%).
Expats see the value of seeking advice earlier
For many, professional advice is already part of managing an international financial life. More than half (52%) rely on a financial adviser, including for tax planning, investment strategy, and retirement planning. But many wish they had sought that support sooner.
Almost nine in 10 (89%) believe obtaining the right financial advice sooner would have improved their investment earnings and savings. On average, they estimate earlier advice could have helped them avoid $56,410 in missed financial opportunities, equivalent to $9,248 for every year spent abroad.
The same pattern emerges around tax. Some 87% believe a better understanding of cross-jurisdictional tax rules would have helped them avoid tax losses, with an average estimated impact of $42,315, equivalent to $6,917 for every year spent abroad.
Future planning is another area where gaps remain. Only 9% of respondents feel fully prepared for wealth succession, while those receiving professional retirement planning advice are more likely to feel well prepared than those who do not (44% vs 31%).
George added: “One of the clearest messages from the research is the importance of taking a long-term view. Higher earnings and savings can provide a strong foundation for building wealth, but the decisions made along the way can have an impact for years to come.
“Planning earlier can help expats make informed choices about their financial future and ensure their plans continue to support them as their lives and ambitions evolve.”—TradeArabia News Service
