Asia's wealthiest people are racing to the Middle East to grow their wealth and diversify their portfolios.
Dubai, in particular, is becoming the center of choice for Chinese wealth managers. According to Reuters, Noah Holdings, one of China's top wealth managers with $23 billion in client assets under management, will be granted a license to operate in Dubai by the end of this year.
Meanwhile, Hong Kong-based Landmark Family Office plans to open an office in Dubai in the coming months.
The trend comes as Dubai steps up its efforts to cater to the needs of the world's wealthiest, including the launch in March 2023 of a dedicated family wealth center.
The center is designed to help high net worth individuals (HNWIs) and family businesses in the UAE cope with issues such as digitalization, cultural issues, governance and succession planning.
While Hong Kong and Singapore have traditionally been the offshore wealth centers for Asian HNWIs, Dubai is growing in importance. In addition to its appeal to wealth management firms, millionaires and billionaires themselves are attracted to Dubai for its favorable business environment, low tax rates, convenient location between Europe and Asia, and access to luxury amenities.
The golden visa regime, "free zones" offering foreign investors tax exemptions and full company ownership, low customs duties and no income tax are all important factors attracting entrepreneurs and investors from around the world.
At the same time, the friendly political and economic relations between China and the UAE have made Dubai a more stable destination to live and invest in, especially against the backdrop of tensions between the US and China. China is the UAE's largest non-oil trading partner and third-largest foreign investor, and the UAE is a key supporter of China's Belt and Road Initiative, with more than 6,000 Chinese companies.
Henley & Partners predicts that Dubai's millionaire population will surge by 78% over the next decade, making it the fastest growing region in the world.
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