SINGAPORE/DUBAI: Some wealthy Asian investors are considering shifting assets out of Dubai to financial hubs such as Singapore and Hong Kong after Iranian missile and drone attacks on the UAE raised concerns about regional stability.
Soon after the attacks on Dubai last week, two Indian entrepreneurs based in the city attempted to transfer more than $100,000 each from local bank accounts to Singapore to hedge risks. Initial attempts failed due to technical issues following the strikes, but one of them later managed to transfer funds through another Emirates-based bank.
Industry advisers and lawyers say a growing number of wealthy Asians are making enquiries about moving assets from Dubai as the U.S.-Israel conflict with Iran unsettles investors and clouds the Gulf’s reputation as a safe financial hub.
Dubai has in recent years become a preferred destination for wealthy entrepreneurs and families from Asia, particularly from China, attracted by favourable tax policies and a rapidly expanding property and infrastructure sector. According to the UAE central bank, total assets in the country’s banking and financial sector exceed 5.42 trillion dirhams ($1.48 trillion).However, recent attacks on Dubai and Abu Dhabi have raised questions about the country’s stability.
Singapore-based private wealth lawyer Ryan Lin said six or seven of his 20 Dubai-based clients, each holding around $50 million in assets, contacted him this week. Three are planning immediate transfers to Singapore, with one client exploring how quickly they can move all their assets.
Iris Xu, a principal at corporate and fund services firm Anderson Global, said 10 to 20 family offices have contacted her firm about shifting assets back to Singapore from the Middle East amid concerns the conflict could persist.
A Singapore-based wealth management adviser said they had spoken with 13 UAE-based clients, more than half of whom were seriously considering transferring assets to Singapore due to uncertainty and travel disruptions linked to the conflict.
Grace Tang, chief executive of Phillip Private Equity, said many of her predominantly Asian clients are anxious, with 10 to 20 seeking advice on moving wealth to Singapore to protect their capital. Some wealth managers, however, say there is no immediate wave of capital flight.
Dhruba Jyoti Sengupta, CEO of Dubai-based WRISE Private Middle East, said clients remain confident in the UAE’s long-term prospects and are already globally diversified.“They are sophisticated global investors and deeply invested in the UAE’s growth story,” he said, adding that clients still feel safe despite geopolitical tensions. UAE central bank governor Khaled Mohamed Balama said the country’s banking and financial sector remains resilient, stable and operating normally despite regional developments.
Major Singapore-based banks, Bank of Singapore and DBS Group, also said clients are closely monitoring the situation but are largely adopting a wait-and-see approach.Some investors are continuing with expansion plans in the UAE. Jeremy Lim, co-founder of GrandWay Family Office, said he is proceeding with plans to establish a family office in Abu Dhabi unless the UAE becomes directly involved in the conflict or tensions escalate further.
