The UK is losing millionaires, and Dubai is gaining them.

• According to research, the United Arab Emirates is expected to be the world's top wealth magnet for the third consecutive year.
• The UAE's expatriate population is expected to decrease by 17% by 2028, with the U.K. being the primary source of expatriates, according to Swiss bank UBS.
• Many financiers believe that the trend is likely to accelerate following the U.K.'s Labour Party's landslide election victory in June.

According to the Henley Private Wealth Migration Report, the United Arab Emirates is expected to be the world's top wealth magnet for the third consecutive year.

The UAE's expatriate population is expected to decrease by 17% by 2028, with the U.K. being the primary source of expatriates, according to Swiss bank UBS.

Some financiers predict that the trend of high-net worth individuals voting with their feet will accelerate after the U.K.'s Labour Party won the landslide election in June, as they seek greener pastures or tax-free expat hubs like Dubai.

Dubai has attracted millionaires due to both push and pull factors, according to Karim Jetha, a longtime regional investor who moved from the U.K. to the UAE during the pandemic, as he shared with CNBC.

""Pull factors include Dubai's perception of being extremely safe and visa reforms that encourage migration. For example, one of Labour's campaign pledges was to levy VAT on private school tuition, which would raise the cost by 20%," he said."

By 2024, the UAE is predicted to have a net inflow of 6,700 millionaires, almost double the second-ranked country, the US, which is expected to have a net inflow of 3,800 millionaires in the same time frame, according to the Henley report released in June.

The UAE's golden visa, a long-term residence visa, has contributed to its reputation as the world's top destination for millionaires, along with its zero income tax, luxury lifestyle, and strategic location, according to a report.

The UAE is expected to attract a larger number of Brits and Europeans, in addition to the millionaires who commonly migrate from India, the wider Middle East, Russia, and Africa.

The wealth management ecosystem in the UAE has contributed significantly to the growth of the country's economy, according to Sunita Singh-Dalal, partner at the Hourani Private Wealth & Family Offices in Dubai.

In less than five years, the UAE has established a comprehensive regulatory system that offers innovative solutions to safeguard, maintain, and increase the wealth of the affluent.

The city of Dubai attracts wealthy individuals due to its modern infrastructure, international school system, geographical connectivity, low crime rate, no income tax, remote worker visa, and investment incentives.

The UBS Global Wealth Report, published in June, predicts that Britain's millionaire population will decrease from 3,061,553 to 2,542,464 by 2028. However, it's important to note that the U.K.'s large millionaire population, which is the third-highest in the world, consists of many foreign residents from countries such as Russia, the Middle East, and others.

With the U.K. government phasing out its "non-dom" status, many wealthy and foreign residents who currently reside in the U.K. will be considering dropping their residency.

The economic and political turmoil in Britain may be intensified by additional unpopular policy choices, according to Hannah White, director of the Institute for Government in London, as stated in the Henley report.

The 40% duty already in effect on estates above a threshold of £325,000 ($417,755) and the ending of the UK's non-dom tax regime starting in 2025 were pointed out.

The Labour government has committed to abolishing the 20% VAT exemption on private school tuition fees, thereby increasing the cost of education for those who send their children to elite institutions.

White stated that Labour's decision to eliminate their 20% VAT exemption is an additional unwelcome development.