Dubai, United Arab Emirates. Wealthy Asians are making enquiries or taking steps to move assets parked in Dubai to Singapore and Hong Kong after Iranian missile and drone attacks and heightened tensions in the region, advisers and lawyers said.
Transfer attempts after attacks
Soon after the first Iranian missile and drone attacks on Dubai last week, two Indian entrepreneurs based in the city tried to move more than $100,000 each from local bank accounts to Singapore to hedge risk, they told Reuters. The entrepreneurs said technological glitches in the aftermath of the attacks initially prevented the transfers.
One of the entrepreneurs said he subsequently transferred the sum to his Singapore bank account via another Emirates-based bank. The entrepreneurs declined to be identified due to the sensitivity of the matter.
Safe-haven concerns and investor behaviour
Industry advisers and lawyers said scores of other wealthy Asians are making enquiries or taking similar steps to move their Dubai-parked assets to the regional financial hubs of Singapore and Hong Kong, as the US-Israel war on Iran clouds the Gulf’s safe-haven perception and rattles investors.
They noted that wealthy individuals typically diversify investments across regions and asset classes, and choose where to be based depending on tax, regulatory, privacy and operational considerations.
Dubai’s rise as a wealth hub
Dubai has emerged in recent years as a preferred wealth hub for entrepreneurs and rich families in Asia, mainly from China, as they sought to take advantage of its favourable policies.
The Gulf region has also become an investment destination amid a property and infrastructure boom. Total assets of the United Arab Emirates banking and financial sector exceeded 5.42 trillion dirhams ($1.48 trillion), according to the central bank.
Scrutiny after attacks on Dubai and Abu Dhabi
The trend is now under sharp scrutiny after attacks on Dubai and Abu Dhabi raised questions over the UAE’s reputation for stability.
Singapore-based private wealth lawyer Ryan Lin said six or seven of his 20 Dubai-based clients, each holding an average of $50 million in assets, contacted him this week, with three planning immediate asset transfers to Singapore. One client was “checking how quickly they can transfer everything to Singapore”, Lin said.
Are you considering moving any of your assets to another financial hub in response to recent regional developments?