Investors jitter as Dubai faces geopolitical strain

With additional reporting by Peter Cowan.

A month into the Gulf conflict, Dubai’s status as a safe haven for global wealth is facing its first real stress test.

Some Asian family offices are reassessing whether the city – and the broader Gulf region – can remain a neutral base to park assets, while venture investors describe a growing “wait-and-see” approach to deploying capital.

Some family offices are looking to shift their portfolios away from Dubai. / Photo credit: Harmony Video Production / Shutterstock

This marks a shift from the early days of the conflict sparked by the US-Israeli strikes on Iran, when industry insiders told The Business Times that they hadn’t seen broad-based capital flight from the Middle East. Now, there are signs that families and investors may be getting itchy feet.

“Recent developments have prompted some families to reassess their exposure to different regions,” says Tay Xinyee, head of Singapore wealth advisory at private banking firm Julius Baer. “This is less about a wholesale shift and more about ongoing portfolio rebalancing and structure review.”

Others see a greater urgency. A Singapore-based asset manager who advises Middle Eastern hedge funds tells The Business Times on the condition of anonymity that many family offices are looking to move their financial assets out “as soon as possible.”

Meanwhile, VC insiders in the Gulf tell Tech in Asia that they are observing a slowdown in capital deployment and deal-making, but they believe that investment activity in April will show the true impact of the conflict.

Dubai is facing an inflection point for how it’s positioned for investors seeking stability across jurisdictions, with other safe havens like Singapore potentially poised to reap the benefits.

Deals slow, but don’t stop

Dubai attracted Asian family offices with its zero-tax regime, golden visa program, and lower-cost structure for establishing the offices. Those firms are now reassessing their exposure to the Gulf.

The United Arab Emirates (UAE) recorded about 9,800 new millionaires in 2025, most of whom are based in Dubai. They have a collective investable wealth of around US$63 billion, according to a report by migration consultancy Henley & Partners.

Families with a large concentration in the UAE are reconsidering the multihub approach of their offices.

“No prudent high-net-worth client would concentrate their holdings in a single jurisdiction vulnerable to geopolitical risk,” points out Ryan Lin, a private wealth lawyer at Singapore-based Bayfront Law.

He has observed a large increase in inquiries from high-net-worth families and family offices seeking to shift part or all of their portfolios from Dubai and the Middle East to Singapore and Hong Kong.

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