Dubai draws the super-rich, but not their assets

More high-net-worth individuals around the world are moving to Dubai as the city actively positions itself as a global wealth hub. Still, many of them prefer keeping their assets in more established wealth hubs such as Singapore and Switzerland, market observers say.

Dubai – alongside the rest of the United Arab Emirates – has become a magnet for private wealth and talent in recent years. The country is expected to have the highest net inflow of millionaires globally in 2024, at more than 6,700, according to migration consultancy Henley & Partners. For Singapore, the estimated net inflow for the same year is 3,500 millionaires.

The Dubai International Financial Centre (DIFC) launched a campus in June 2024 that aims to be the largest cluster of AI and Web3 companies in MENA. / Photo credit: Shutterstock

In 2023, the UAE also had the highest percentage growth as a booking center – a specific location where transactions linked to a client’s assets are formally recorded and managed. The number was up 8.9% or US$48 billion in cross-border wealth, a Boston Consulting Group report indicates. The country is on track to become the sixth-largest booking center worldwide by 2028.

Yet, the high-net-worth clients who are moving to the UAE are still not viewing the country as a premier booking center, says Dominic Volek, group head of private clients at Henley & Partners and a member of its executive committee.

“A lot of wealthy people still look at Switzerland, Singapore, the US, and London, as better known – and therefore, safer – bets in terms of booking assets,” he says.
Volek adds that while several global private banks may have a presence in the UAE, they are typically there as relationship managers with no booking centers.

Safer bet

Private banks in the UAE are largely focused on helping clients who reside in the country but wish to hold their funds overseas, says David Gibson-Moore, president and CEO of Dubai-based corporate advisory Gulf Analytica.

He notes that traditional centers such as Singapore and Switzerland remain the gold standard in wealth management. On top of their decades-long reputation for trust, stability, and specialized expertise, these centers have strong regulatory frameworks and political stability that are “particularly appealing for those focused on intergenerational wealth preservation,” Gibson-Moore explains.

While the UAE has made many significant strides, it is still faced with hurdles stemming from the perceptions of geopolitical risk in the region, he adds.

Gibson-Moore also says the country lacks certain financial products that are typically available in other centers as well as local depth in wealth management expertise.

“Many wealthy individuals located in the UAE follow diversification strategies anyway, spreading their assets across multiple jurisdictions to mitigate risk,” he points out.

Meanwhile, a spokesperson for Singapore-based investment company Manoharan Capital says Dubai has a harder landscape to navigate because of differences in relationships and the business environment.

“Dubai is really thriving in the capital they have, but when you compare it with Singapore, being more established, it just seems like [Singapore is] a safer bet,” the spokesperson explains.

See also: SEA companies making waves in the Middle East

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