Dubai ranks as competitive global hub for affluent lifestyles: Julius Baer report
Optimism among Middle Eastern high-net-worth individuals (HNWIs) remains exceptionally strong: a third reported major wealth accumulation last year, and 43 per cent are expanding their investments and expenditures
13 July, 2026
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Dubai remains a competitive global hub for affluent individuals, offering relative value across luxury real estate, premium vehicles, jewellery and travel despite a global rise in the cost of a premium lifestyle, according to the Julius Baer Global Wealth and Lifestyle Report 2026.
The report said Dubai ranked 14th in this year’s index, with the shift in position largely reflecting higher costs in other global wealth centres rather than a decline in the emirate’s affordability.
Globally, the cost of a premium lifestyle increased by an average of 10.2 per cent in US dollar terms over the past year, driven mainly by currency fluctuations rather than local inflation, Julius Baer said.
Cities linked to strengthening currencies, including the euro and Swiss franc, saw sharper increases in prices for high-end goods, while locations anchored to the US dollar benefited from more favourable cost structures for affluent expatriates and internationally mobile families.
Dubai’s dirham peg to the US dollar supported its relative position, the report said, helping protect purchasing power for residents amid global currency volatility.
The report highlighted Dubai’s competitiveness in high-value spending categories, noting that premium automobiles, jewellery and business-class travel remain attractively priced compared with peer cities globally.
Dubai’s prime real estate market also continues to offer relative value compared with higher-priced Asian and European wealth centres, while maintaining premium standards across areas such as five-star hospitality and Michelin-calibre dining, the report said.
Middle East wealth outlook
The report found strong optimism among Middle Eastern high-net-worth individuals (HNWIs), with a third reporting major wealth accumulation over the past year, more than double the proportion recorded among European counterparts.
It said 43 per cent of affluent Middle Eastern individuals were expanding their investments and lifestyle spending, exceeding levels seen in the Americas and Europe.
The report also highlighted the region’s focus on family wealth preservation, with 98 per cent of respondents living in larger family households. Six in ten HNWIs had addressed succession planning over the past year, while 65 per cent used family offices and 73 per cent had established formal family governance frameworks.
Rishabh Saksena, co-head of Global Asset Class Specialists at Julius Baer, said the GCC entered 2026 from a position of strength but had faced challenges from heightened geopolitical uncertainty affecting short-term growth prospects.
“Oxford Economics and ICAEW now forecast Gulf Cooperation Council (GCC) GDP to contract by 0.2 per cent in 2026, against a previously projected 4.4 per cent expansion for the year, with a strong rebound of 8.5 per cent projected for 2027 as conditions normalise,” he said.
Saksena said the near-term pressure was concentrated in sectors exposed to confidence and connectivity, including tourism, hospitality, real estate and aviation.
“Governments across the Gulf have responded with targeted fiscal measures, while central banks moved to protect liquidity and maintain market stability, drawing on the deep fiscal buffers accumulated through years of deliberate economic reform,” he said.
GCC diversification and AI investment
The report said the GCC’s longer-term economic outlook was supported by structural transformation, with non-oil sectors now accounting for approximately 73 per cent of total GCC GDP.
Artificial intelligence has also become central to government economic strategies across the Gulf, with sovereign capital deployed through dedicated national vehicles and regional strategies, the report said.
AI is projected to contribute up to $320bn to the Middle East economy by 2030, according to the report.
Julius Baer said supportive residency frameworks and stronger regulatory policies would continue to attract capital flows, institutional investment and wealth migration to leading financial centres in the region.
The report also highlighted changing priorities among global affluent individuals, with demand for luxury experiences, high-end dining and travel remaining strong.
It said investments in personal wellbeing had increased, reflecting a growing focus on longevity, health and security as components of modern wealth.
Julius Baer said the report’s data collection ended in late February, while survey fieldwork concluded in early March, meaning the impact of the ongoing situation in the Middle East had not been reflected in the findings.























