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  • PWC

Private Capital Flees Russia

A tsunami of private capital has left Russia and the Ukraine, the UK has lost its wealth hub crown, and the U.S. is fading fast as a magnet for the world’s wealthy, with the UAE expected to overtake it by attracting the largest net inflows of millionaires globally in 2022, says the ‘Henley Global Citizens Report.’ The second quarter report from Henley & Partners shows, as expected, Russia has suffered the biggest emigration of millionaires over the past six months, with forecast net outflows of 15,000 by the end of 2022 ‒ a massive 15 per cent of its HNWI (high-net-worth individual) population and 9,500 more than in 2019, pre-pandemic. Russia’s invasion is, in turn, driving a steep spike in outgoing HNWIs from Ukraine, which is predicted to suffer its highest net loss in the country’s history ‒ 2,800 millionaires (42 per cent of its HNWI population) and a net loss of 2,400 more than 2019. The UK, once touted as the world’s financial centre, continues to see a steady loss of millionaires, with net outflows of 1,500 predicted for 2022. This trend began five years ago with the Brexit vote and it’s estimated that the UK has suffered a total net loss of approximately 12,000 millionaires since 2017. America is also notably less popular among migrating millionaires, in part due to the threat of higher taxes. The country still attracts more HNWIs than it loses to emigration, with a net inflow of 1,500 projected for 2022, although this is an 86 per cent drop from 2019 levels, which saw a net inflow of 10,800 millionaires. By contrast, the UAE has become the focus of intense interest among affluent investors and is expected to see the highest net influx of HNWIs globally in 2022, with 4,000 forecast ‒ an increase of 208 per cent versus 2019’s net inflow of 1,300 and one of its largest on record. Projected figures on the show the top 10 countries for net inflows of HNWIs in 2022 will be the UAE, Australia, Singapore, Israel, Switzerland, the U.S., Portugal, Greece, Canada, and New Zealand. Large numbers of millionaires are also expected to move to ‘the three Ms’: Malta, Mauritius, and Monaco. On the flip side, the 10 countries with the highest net outflows are forecast to be Russia, China, India, Hong Kong, Ukraine, Brazil, the UK, Mexico, Saudi Arabia, and Indonesia.


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