Dubai Emerges as Global Wealth Hub Amid China-Middle East Relations
As China-Middle East relations flourish, Asian wealth managers flock to Dubai, anticipating increased demand for regional diversification. Notably, Noah Holdings, managing $23 billion in assets, plans a Dubai presence by 2024. Qing Pan, CFO, highlights support for Chinese entrepreneurs in Dubai. With Beijing prioritizing the Middle East amid strained relations with Washington, Dubai attracts wealth due to its neutral stance, business-friendly environment, and post-COVID recovery. The UAE’s ‘golden visa’ system and the 2023-established ‘family wealth centre’ further enhance Dubai’s appeal.
Western wealth managers, like Lombard Odier, capitalize on the trend. While Singapore and Hong Kong traditionally dominated Asian offshore hubs, clients now seek diversified investments. Capgemini’s 2023 wealth report notes a global decline in high-net-worth individuals (HNWI) but a 2.8% rise in the Middle East. Henley & Partners data reveals the UAE as the top destination for billionaires. Farro Capital and Tsang Group open Dubai offices, echoing Nomura and Deutsche Bank’s moves.
Landmark Family Office expands to Dubai, assisting clients from China, Southeast Asia, and Australia. A Campden Wealth survey shows a 1% average asset allocation to the Middle East by Asia-Pacific family offices, with 7% planning an increase. Geopolitical factors amplify Dubai’s attractiveness, making the Dubai International Financial Centre a potential global wealth management hub.
