Gulf expats shop for second homes, safe haven in Europe
Expats in the Middle East are shopping for second homes in Europe and paying hundreds of thousands of dollars for second passports as the Iran war fuels safety concerns and drives demand for stable overseas assets.
Hotspots for house-shoppers include London, Paris, Geneva and Monaco, which are seeing increased interest from expats living in the UAE, Saudi Arabia and other Gulf states, Bloomberg reports.
Buyers are focusing on prime, ready-to-move-in properties and working through family offices and brokers to secure residences quickly, with some shifting funds out of the region as security risks rise and travel patterns change.
In parallel, demand from UAE expats for passports from other countries has increased since the start of the war, Arabian Gulf Business Insight reports. It cites an Indian-Arab family of four that secured citizenship in St. Kitts and Nevis under a government program that charged about $270,000.
Meanwhile, U.K. Chancellor Rachel Reeves is seeking to attract expats from the Gulf by promoting Britain as a safe haven and repairing relationships strained by recent tax changes, The Financial Times reports. She plans to revisit tax rules that currently risk double taxation on income from U.S. LLCs for those relocating to the U.K., according to the FT.
UAE mulls relaxing tax residency rules to lure expats back post-war
The UAE is considering action to ease tax residency rules for expats who left amid the Iran conflict.
Authorities may allow residents to spend longer periods abroad without losing their favorable tax status in an effort to encourage their return, The Financial Times reports.
The policy could be especially significant for Dubai, which has attracted high-net-worth individuals with its zero-tax appeal.
The adjustment reflects the UAE’s effort to protect its status as a global hub for mobile wealth and talent, the FT notes.
Dubai tourism posts record growth in the first half of 2025
Dubai is setting new tourism records this year while wealthy expats continue to feed the city’s real estate boom.
Almost 10 million foreigners visited Dubai during the first six months of 2025, a 6% increase over the same period last year that puts it on track to exceed the 2024 total of 18.7 million.
Western Europe was the largest source market for Dubai, accounting for 22% of international visitors, followed by the Russia and Eastern Europe region, and South Asia, contributing 15% each, according to government figures.
Demand for new homes from foreigners, meanwhile, is fueling construction in the city, with 24 real estate projects valued at $1.2 billion completed in the first half of 2025.
Oman looks to introduce personal income tax on high-earners
Oman is pushing forward with plans to impose a personal income tax on high-earning citizens and expats that would make it the first member of the GCC to take such a step.
The proposal, which has been floated by the government for more than a decade, was recently presented for consideration to the State Council, The National reports.
Introducing a personal income tax is in line with the country’s efforts to diversify its revenue streams and reduce its dependence on oil. If enacted, the tax would probably apply to citizens with net global income of $1 million or more and foreign nationals on Oman-sourced income above $100,000.
The proposed tax rates range between 5% to 9% for foreign nationals and a flat rate of 5% for Omanis.
The UAE and Saudi Arabia have refrained from taxing individuals to make their countries more attractive to international companies and candidates for skilled jobs.
Dubai creates quality-of-life office as competition to attract talent heats up
In a bid to rouse would-be expats from their roosts in London, New York and Singapore, Dubai has created a new office dedicated to improving the quality of life in the Middle East’s wealthiest city.
The plan tracks with a growing trend among Gulf economies to prioritize investments in livability as competition for knowledge workers – financiers, tech engineers and healthcare workforces – heats up. Populations are on the rise in cities across the region including Dubai, as well as Abu Dhabi, Doha and Riyadh.
Under directives from Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, and Sheikh Hamdan bin Mohammed bin Rashid, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, the Dubai Quality of Life Strategy 2033 was approved on Tuesday with the aim of turning Dubai “into the world’s best city to live in.”
Encompassing 200 projects and 1,000 live events aimed at drawing stars and sports teams, Dubai will also focus urban plans on residents’ ability to access essential services within a 20-minute journey — a distinction cities like Paris take pride in.
The plans will rely heavily on private sector participation, according to a statement.
Riyadh is undergoing a similar effort, pouring billions of dollars into beautifying the kingdom’s capital with parks, refurbished boulevards and new culture and leisure spaces as society opens up in the long-conservative kingdom.
Wealthy expats key to GCC long-term growth, according to Mercer
Retaining wealthy expatriates for the long-term is critical to the growth of Gulf economies as cities vie to attract workers who are projected to live longer and retire earlier, according to a new report from Mercer, released with the World Governments Summit in Dubai this week.
“GCC countries like the UAE – because of their significant proportion of high-net-worth international expatriates – could benefit from more expatriates staying for retirement,” said Mercer’s Robert Ansari, a co-author of the report.
Opportunities are growing for expats in technology and financial services across the region as the GCC relaxes visa rules and expands incentives to lure start-ups, tech companies and multinational financial firms. The UAE’s visa reforms, including its move last month to lower spending requirements to secure a 10-year residency visa, the so-called “Golden Visa,” is one example.
Home sales, a barometer of long-term commitment, are a mixed bag in the Gulf as high prices and rising interest rates pinch buyers. Residential real estate transactions in Saudi Arabia declined 16% last year compared to 2022, according to a new report by property consultancy Knight Frank. Dubai, by contrast, is shrugging off the affordability challenge — the market is hot and international buyers are flocking. The emirate counted a record 1.6 million real estate transactions last year, up 17% compared to 2022, according to the Dubai Land Department.
