I’m Preeya Malik, Managing Director of Step Global Group. We’re a leading consultancy for Investment Immigration in the MENA region.
As the managing director of an investment immigration firm based in the United Arab Emirates, I have more than 15 years of experience as an immigration lawyer. As such, I work with high-net-worth individuals, many of whom own and run their own businesses, on a consistent basis. So, I’ve seen firsthand that many of these HNWIs are always looking to invest.
Investing allows business owners and other HNWIs to appreciate their wealth and diversify their investments to safeguard against specific industry crashes and unforeseen societal changes. Over the years, I’ve seen a shift in how and where these investors make their investments, from stocks and bonds to real estate and, more recently, digital currencies. Another category of investment asset that I’ve seen become more common among the HNWI community is investment immigration.
Investment Trends Among Business Owners And Other HNWIs
Digital currencies have disrupted the investment market in recent years, with more high-income earners investing in once-unknown online currencies. Back in 2009, British singer Lily Allen famously rejected bitcoin as payment for an online gig, and that payment would have been worth millions today. I believe many investors are wary of missing the boat on new opportunities in similar ways.
Meanwhile, modern trading platforms have made trading stocks and shares much more accessible to the masses in recent years. Naturally, one would assume that this would mean business owners and other HNWIs are also investing more heavily in stocks and shares. However, the percentage of American citizens investing in the stock market is below the peaks of the early 2000s. Wealthy young Americans, in particular, hold fewer assets in the stock market than older investors and are “opting for alternative investments, such as real estate, private equity and cryptocurrency, to fill out their portfolios,” CNBC reported.
In the investment immigration industry, I’ve been seeing a consistent rise in demand for second passports and citizenships in recent years. In my opinion, this is for two main reasons: First, some want to reside in places with more political and environmental stability. Not needing to apply for visas reduces the time and effort needed to move between countries. Second, many investment immigration programs also include their spouses and any children they might have (typically under the age of 21 or 22), and some want to give their children access to better education systems. Another benefit that’s particularly valued is the ability to expand their businesses internationally into their new country of residence and gain clients in a whole new territory.
The investment immigration process is also fairly straightforward: The individual makes an investment—which could be in the form of real estate, funding research, charitable donations and many more—into their country of choice via an array of available programs across the globe. In exchange, they are granted citizenship, or in many cases, residency, in that country.
Looking Ahead: Advice For Leaders
All of this to say, investments are here to stay. In fact, I think they’ll become more and more prominent as the world gets smaller and technology continues to advance. If somebody were to ask me what I think investments will look like in 2035 and beyond, I’d have to speculate that, while physical and tangible investments will never disappear completely—real estate seems to be immune to the aging nature of time and becomes more lucrative by the decade—I think there will be many more digital opportunities and investment avenues.
A part of me wonders if one day in the future, we’ll be able to invest in singles and albums or painters and content creators, helping fund creatives to produce more of their products. One thing I’m certain of is this: Business owners’ and HNWIs’ appetite to appreciate and diversify their portfolios will continue to drive innovation and change in the investment space, ultimately leading to new paths to explore for investment aficionados.
So, what do high-net-worth business owners need to consider? Firstly, education is key. Try to stay ahead of the curve on what will be the next “big thing” in terms of investment opportunity. Research not only the benefits but also the risks. It is also best practice to consult with tax and legal professionals before making any investments to mitigate any risk of legal noncompliance. This is particularly pertinent to business owners and HNWIs who are looking at investment immigration, as there could be legal considerations for taxation, as well as the running of their business overseas.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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