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Asia wealth managers flock to Dubai as clients look to diversify

VCCircle · 10m

A growing number of wealth managers in Asia are establishing offices in Dubai to take advantage of warming relations between China and the Middle East. They anticipate increased demand from clients for geographical diversification. Dubai is becoming a preferred wealth hub for entrepreneurs and rich families in Asia, particularly China, due to favorable policies and business expansion opportunities. The Middle East has grown in importance for China amid strained relations with the US. Factors such as post-COVID economic rebound, tax-free status, and ease of doing business have contributed to the region attracting wealthy individuals. Singapore and Hong Kong have traditionally been the preferred offshore wealth hubs in Asia, but some clients are now seeking diversification and exposure to new investment opportunities. The Middle East has seen an increase in its high net worth individual (HNWI) population, and the UAE had the highest net inflow of millionaires globally in 2022. Wealth managers are capitalizing on this trend by setting up offices in Dubai.