UK-based steel tycoon Lakshmi Mittal who set up shop in the British Isles 30 years ago, may be planning a major move to shift to the ultra luxurious Naia island in Dubai according to a report by the Sunday Times. The publication confirmed that the billionaire founder of ArcelorMittal, who is UK’s eight-richest man with a net worth of 15.4 billion pounds, was a “resident in Switzerland for tax and is to spend much of his future in Dubai.”
The reason behind Mittal’s departure from a place he called home since 1995 and built the ‘Taj Mittal’ mansion is a simple one: The Labour Party-led UK government’s decision to impose stricter wealth taxes on the uber-wealthy. This will entail a 20% exit tax, an already imposed inheritance tax of 40%, a potential mansion tax and the end of the non-domicile tax regime which allowed individuals with non-dom status to pay taxes only on income and gains earned within the UK. This move has spooked billionaires like Mittal who are now looking for tax havens elsewhere.
What is Naia Island and why is it so special?
While Mittal already has a baroque-style mansion at the luxurious Emirates Hill gated community in Dubai that he paid a whopping $200 million for, according to the Sunday Times, he is now planning to expand his real estate ventures in the UAE and has done so by purchasing “tracts of an intriguing development on nearby Naïa Island.”
Located just off of Dubai’s Jumeirah coastline, Naia island is an all-exclusive, ultra-luxurious private island being designed and developed by Shamal Holding – the investment group behind some of Dubai’s most luxurious real estate projects. The island is to specifically cater towards the world’s ultra-high-net-worth individuals (UHNWIs).
Despite being positioned as a secluded getaway for the wealthy, the island is actually very well-connected to mainland Dubai and residents are set to have easy access to the lavish shopping districts, yachting zones and all other fancies that the city promises. Residents of the island are each to be provided with individual private beach fronts, private marinas for boating or yachting and nature-inspired architecture in an open coastal design, which is in stark contrast to Dubai’s towering skyscrapers.
Most importantly, the island will have the Cheval Blanc Maison at its heart – a collection of ultra-luxurious hotels and residences owned by LVMH which has locations all over the world with the next one slated to be at Naia island. Each Cheval Blanc location caters towards the place where it is built and promises bespoke services, private villas with discreet entrances, designer wellness and lifestyle experiences and meals by Michelin-starred chefs for guests.
Why are Billionaires choosing Naia island?
With western countries tightening tax laws and regimes especially for the extremely wealthy residents, billionaires are looking to settle in nations where wealth laws aren’t so stringent. By moving to countries like the UAE, the ultra-rich are in a sense, evading these issues.
Moving to the UAE promises residents a tax-free model which ensures financial freedom, luxury living and spending, high security and a strong economy. The main attraction perhaps is the fact that there is no income tax imposed on even the billionaire class, and subsequently no capital gains or even inheritance tax. Moving to Dubai ensures billionaires like Mittal, long-term stability and the ability to invest freely with no tax departments breathing down their necks.
