The West wakes up to investment migration

OPINION by Ahmad Abbas, Director of Content Services at Investment Migration Insider

One good thing about global catastrophes is that they breed progress. Humans, when adequately motivated, can produce marvels.

As the pandemic tore through the fabric of the world, medical professionals kicked into high gear, progressing the science of vaccine production by decades. Supply chain management also evolved the sum of years in a matter of months. It was the still waters of investment migration, however, that remained relatively quiet. Or so it seemed. Caribbean nations stepped it up, making remote processing simple, online payments a reality, while Antigua & Barbuda waived the requirement for applicants to be present when taking their oath. Nations that had a remote processing framework in place saw their RCBI programs flourish, while others who did not adapt saw record lows - just ask Greece. But it isn't the evolution in processing or operations that interests me, nor is it the closure of RCBI goliaths such as Malta's and Cyprus's CIPs, but something else, something much more significant: awareness.

AS AWARENESS OF INVESTMENT MIGRATION GROWS IN THE WESTERN WORLD, MORE CLIENTS FROM TRADITIONAL "DESTINATION COUNTRIES" MAY SEEK OUT RCBI TO ADDRESS ISSUES THAT WERE NON-ESSENTIAL PRE-PANDEMIC, BUT WHICH HAVE COME TO THE FORE DUE TO THE FORCED REARRANGING OF PRIORITIES.

As the pandemic highlighted our complete unpreparedness, the world's elite began seeing the gaps in their supposedly well-structured financial kingdoms. Businesses began to crumble under the weight of lockdowns, financial services slackened, stocks began tumbling, and global economies collapsed. The rich were suddenly not getting any richer, everything halted for a moment, and people could see what they had been doing wrong.

Enter investment migration, the world's most resolute Plan B. Those who had already invested in a global mobility asset were afforded something not many had during the pandemic - options. Whether it was greater travel mobility during a time of global lockdowns or if it was just about safeguarding their wealth, RCBI proved invaluable, and many began to take note.

Investment Migration Insider Daily's (IMI) After Covid Report revealed that a whopping 71 percent of respondent RCBI firms saw an increase in inquiries following the pandemic. While inquiries are not a solid base for calculating actual demand, they are a reliable indicator for something just as important - heightened awareness.

What was even more interesting was where that growth in awareness was coming from.

INVESTMENT MIGRATION IN THE WESTERN WORLD

Historically speaking, the most significant client pools for investment migration were China, the MENA region, and Russia. The pandemic's lingering effect, however, could change that sooner rather than later.

More western high-net-worth individuals (HNWIs) are now looking to obtain global mobility assets as a precaution against another crisis. According to IMI's report, North America has suddenly become the third-largest client source for RCBI firms, a shocking twist by any standard.

But is it that surprising? The USA's tax regime has long been considered one of the most brutal globally, a matter which RCBI can help alleviate. Wealthy Americans may now look to find other citizenships that can relieve the burden of high taxes, and, if news outlets are to be believed, an increasing number of USA nationals are now renouncing their citizenship.

I am not saying that all wealthy Americans will apply for a commonwealth passport, nor will the popularity of obtaining a green card die down among immigration hopefuls; what I am saying is: the American dream isn't what it used to be, and the people can now see that.

But this piece is not a deep dive into the feasibility of opening a branch in the USA; it is about something more profound, a shift in how the world views investment migration. Global mobility assets are much more than the name indicates, as enhanced travel ability is just one of the many benefits they offer

in terms of financial freedom, individual sovereignty, and more. People are beginning to understand that RCBI is a framework for a better life as well as the most substantial safety net a person can have.

As awareness of investment migration grows in the western world, more clients from traditional "destination countries" may seek out RCBI to address issues that were non-essential pre-pandemic, but which have come to the fore due to the forced rearranging of priorities. This shift from destination to source countries can have long-lasting, colossal effects on the investment migration industry, especially in the form of RCBI programs.

NEW LOOKS FOR NEW CLIENTS

As western clients inquire more about available global mobility assets, the more we as industry professionals can understand their needs. Someone from the UK, for example, may have different pain points from those of someone from Yemen, and the most significant question to ask in this situation is: are current RCBI programs structured to meet those pain points?

For a long time, obtaining a second passport was mainly about enhanced visa-free travel; that is why the majority of clients came from weak-passport holders from regions such as China or the MENA. Caribbean CBI nations have catered to those respective client bases for quite some time, honing their programs to meet these aspiring investors' needs and marketing to them in ways that touched on their pain points.

But catering to western clients may prove extremely different. A new tone, differing benefits, and new processes may be needed to attract large amounts of this new client base to any given CIP.

Changes could even affect investment options, as investment funds, for example, are quite popular in the USA but are a foreign concept to many in the Middle East. Suppose demand from US citizens for Commonwealth passports continues to grow. In that case, we may see loan or share capital options pop up in a CIP to familiarize themselves with the American investor.

We may even see new options or routes for smaller family compositions, as, unlike the MENA region, western countries have, on average, fewer family members than their Arabic counterparts.

Some may see the effects of the pandemic as a shift toward online processing or CIPs slashing prices, but I see it differently. I think the pandemic has opened the eyes of the world's elite and showed them what they are missing out on if they don't consider obtaining global mobility assets, and this newfound awareness can terraform the entire landscape of our industry.

It is akin to adding a new species to a well-balanced ecosystem; it will change everything with time, all we need to do is be prepared for it to happen.

I THINK THE PANDEMIC HAS OPENED THE EYES OF THE WORLD'S ELITE AND SHOWED THEM WHAT THEY ARE MISSING OUT ON IF THEY DON'T CONSIDER OBTAINING GLOBAL MOBILITY ASSETS, AND THIS NEWFOUND AWARENESS CAN TERRAFORM THE ENTIRE LANDSCAPE OF OUR INDUSTRY.