For the first time in several decades, wealthy immigrants leaving Israel outnumber those determined to stay, according to Henley & Partners’ 2024 Private Wealth Migration Report.
The Israeli Globes platform quoted the report as saying that Israel was removed from Henley & Partners’ list of the 20 countries that attract private wealth, which is a significant departure – according to Globes – from the 12th place it achieved last year, when Israel witnessed a net influx of 600 wealthy individuals.
A report published today by the International Residency and Citizenship Foundation by the investment consulting firm Henley & Partners highlights a significant decline for Israel, which has been ranked among the top ten destinations for millionaire immigrants for several decades, according to Globes.
Henley & Partners defines a wealthy person as someone with liquid assets of more than $1 million.
Effects on morale
“This seismic shift underscores how quickly any conflict can undermine a country’s attractiveness in the eyes of the world’s wealthy and globally mobile,” commented Dan Marconi, senior client advisor for the company’s Israel branch. “The ongoing war has not shattered Israel’s image as a safe haven.” “But it also threatens to overshadow its economic achievements,” according to Globes.
Marconi’s statements point to the economic damage caused by the Israeli war on Gaza, especially in sectors that rely heavily on investor money, such as high-tech startups.
Globes adds that the exodus of wealthy investors represents not only a blow to the image of security, but also represents a major economic setback that may be difficult to reverse.
Global wealth migration trends
While Israel has seen a decline, other countries have seen large influxes of wealthy immigrants. The UAE ranked first, attracting 6,700 wealthy immigrants last year. The United States followed with 3,800, and other major destinations included Singapore, Canada, Australia, Italy, Switzerland, Greece, Portugal and Japan.
Conversely, countries such as China, the UK and India have seen the highest outflows from wealthy individuals, indicating a shift in global economic confidence and perceptions of safety.
Economic health indicators
The Henley & Partners report is considered a leading indicator of a country’s overall economic health. The migration of wealthy individuals often signals broader economic trends and investor confidence. This movement of capital can have significant impacts on the economic landscape of host countries, affecting everything from real estate markets to startup ecosystems.
The drop in Israel’s rating and the outflow of wealthy individuals reflect broader concerns about stability and economic prospects amid the ongoing war, according to Globes. As investors seek safer and more stable environments, the challenge facing Israel – according to Globes – will be to restore confidence and rebuild its appeal to the wealthy and mobile globally.
