Lionel Laurent: Dubai is the largest beneficiaries of "Paris Fall"

Spring came to Paris, and life returned to cafes and restored the atmosphere, amid indications of economic improvement. The new extension of the subway also contributed to facilitating the movement within the city, as the reach of any point has at most 15 minutes. Despite this positive atmosphere, there are those who plan to transfer their wealth abroad; Two residents told me about their plans to leave, one on their way to Dubai and the other to Switzerland. Like the displacement of non -residents and bank workers in London in the wake of Britain’s exit from the European Union (Brexit), Paris is now going through a stage of financial dissatisfaction, as high taxes form the decisive factor that has not continued the financial conditions, especially this past year of President Emmanuel Macron’s mandate. Taxes on large and wealthy companies see an increase, while Marine Le Pen is above the scene as the best candidates in the 2027 election. At the same time, Parliament is suffering from a political stalwart, and the consequences of the struggle to reform the pension system that shook the country in 2023 have still cast a shadow over the political scene. Bank investment has decreased after an unprecedented wealth period during which Paris witnessed the conversion to the favorite bank destination in the eurozone, as almost double the number of French workers in the financial and investment sector receiving salaries of seven numbers (millions of euros) within four years. This slowdown indicates what can be described as “the height of Paris”, a new stage in the race to attract global talent, which puts Europe in a relatively retreating place. In this context, Kirill Corbouan, president of JP Morgan Chase, said in France at a conference organized by “Bloomberg” last week, that Paris won the Post -Brexit match to attract institutional bankers and investment bankers, and strived to encourage tax incentives and reforms. He pointed out that his business expanded its presence in France, where the number of employees increased from 230 to 950 during one decade. Dubai is performing as a global investment center, but Paris and London are losing the fight in the attracting private investment funds and hedge funds in favor of emerging financial centers outside the traditional movement between the two capitals, led by Dubai, where an income tax is not imposed, and organizational regulations are distinguished by their flexibility as well as Investment funds estimated at the dollar dollar. In this context, Paul Marshall, the head of one of the hedge funds, said that the neighboring Abu Dhabi “excels” in terms of tax policies. While the Madrid and Milan cities are good to attract the rich journey between countries, they cannot compete with the UAE, which has received more than 6700 millionaires over the past year, according to the Henley & Partners data based in the London. The vague between economic diversification and organizational risks has previously indicated that the competition of the UAE should not be underestimated. The recent recovery in the state seems more durable compared to the surveillance of the debt financed, seen in 2008, and is based on concrete efforts to establish an advanced financial center, to expand revenue sources away from oil, the tourism sector – despite the existence of clear challenges, such as the growing wealth of cryptocurrencies. and the record of money laundering. The attraction of the UAE is not just limited to hedging boxes; Revolution Ltd. CEO Nick Storonsky has become an increasing time in the country in the light of the UAE investment in his business specializing in financial technology. The Dutch software “Bird” has decided to establish a regional center there to avoid organizational challenges and employment problems in Europe. Even young advisers preferred Abu Dhabi over European cities such as Dusseldorf in Germany. Although some people may see that the departure of the rich is not a concern, the reality confirms that the movements of the high -income taxi can have tangible consequences in the long run. In France, the highest 10% of most revenue families carry more than 75% of income tax income, while the percentage is more than 60% in the UK. The more governments were involved in what one of the French MPs described as the financial ‘slaughter’, the more erosion of the tax base, which could aggravate the pressure on national economies in the future. Kirill Corbwan of JB Morgan, the opportunities to maintain his financial position, sees that Paris still has an opportunity to retain his position as a financial center, showing after 2030 as the ‘right test’, when the tax emissions that last eight or nine years, and granted to institutions and individuals who moved to Paris. But this evaluation can be optimistic, in light of the exasperation of the financial deficit in France, the approaching presidential election in 2027, in addition to the almost implementation of US President Donald Trump’s decision to impose large -scale duties. Defense reactions – such as drawing up tax on the country’s departure to reduce the loss of tax revenue – can reduce the weight of the ‘peak of Paris’. The decline in the attractiveness of the United Arab Emirates, as geopolitical tension in the region, escalates, can also be one of the scenarios that some European governments bet. However, alternative options to revive Paris should develop Paris a new investment approach that exceeds its traditional pillars in tourism, luxury and businesses related to political influence; Especially in light of the decline in new inductions in the stock market. One of the options offered is to focus on the European market, as France still has the necessary ingredients as a financial center, provided the continent takes serious steps to integrate its dirty markets and free the trillion euros from frozen savings. As far as the other option is concerned, it lies in making Paris a more attractive city, which can encourage young expatriates to return when they want to establish families, which is a powerful point that France has thanks to the tax emissions related to the care of children. In this context, converting offices into housing, increasing investment in infrastructure, improving the quality of education and attracting engineering competencies can be more realistic and sustainable options to compete with cities that offer extensive tax emissions. Currently, the general feeling of high tax burden is expected to continue.