The UAE continues to attract the world’s wealthy elite in establishing family offices in Dubai and Abu Dhabi, according to Bloomberg. At “Abby Road Investment Group,” the wealth management calls and emails from across the globe are increasing.
Inquiries are coming from potential clients in India, the UK, the US, Africa, and even Brazil, all eager to set up family offices in Dubai and Abu Dhabi, which offer asset protection and are driven by a tax-free environment for income and inheritance, along with a growing financial infrastructure.
Estimates by Henley & Partners suggest that the UAE is expected to welcome around 9,800 new millionaires this year, more than any other country. Dubai and Abu Dhabi have become irresistible options for the richest individuals globally.
Europeans are flocking to the Gulf nation in search of a refuge from economic uncertainties, while some wealthy Chinese are looking beyond traditional favorites like Singapore. Additionally, the UAE has become a top choice for many relocating from the UK.
The Dubai International Financial Centre is home to family entities managing over $1.2 trillion, with the total number of these entities increasing by 33% to 800 last year.
This influx of wealth has led to another year of rising prices in Dubai’s luxury real estate sector and is also providing fresh capital for its thriving hedge fund industry, which now boasts over 70 hedge funds.
Preliminary data indicates that luxury real estate prices in Dubai— a favored investment for foreign families—hit new record highs in the second quarter. Last month, the Abu Dhabi Global Market welcomed 267 new entities, including various types of companies and family offices.
The inflow of new funds, combined with billions already possessed by local families, has contributed to the development of a more sophisticated private banking industry in the UAE, with banks such as Barclays PLC, Deutsche Bank AG, and Bank of Singapore expanding their operations.
Abby Road
Arjun Mittal, the founder of Abby Road Investment Group, stated that his clients appreciate the UAE’s central geographic location between East and West, its tax advantages, and the rapidly evolving financial system. He added, “We haven’t experienced any slowdown whatsoever due to regional conflicts; instead, this has reinforced the UAE’s position as a neutral strategic hub.”
Bridgewater
Ray Dalio, founder of Bridgewater Associates, who has frequented the UAE for nearly 30 years and established his family office in Abu Dhabi in 2023, noted the country’s multicultural lifestyle and its expansion in finance and artificial intelligence.
Dalio remarked, “It draws more interest because while other places deteriorate, it improves rapidly, making those contrasts more pronounced.”
Barclays
Barclays has witnessed double-digit growth in the total number of family offices it serves in the UAE, relocating staff from abroad. Matthias Gonzalez, the new head of investments in private banking at Barclays in Switzerland and Dubai, said in an interview:
“The UAE is a crucial strategic market for us, not only because of the wealth creation by local Emiratis but also because of the substantial migration to the UAE, which has been incredibly successful.”
MHQ
At MHQ Financial Consulting, based in Dubai, managing partner Jan Mrazek reported that one in five family offices they are establishing is Chinese or related to China.
Elsewhere, a Chinese family office representing several billionaires recently sold most of its financial assets in the US amid recession fears and allocated a significant portion of the proceeds to Dubai this year, noting that the family preferred Dubai over Singapore due to its flexible regulatory requirements, according to a source who requested anonymity to discuss private information.
The UAE is the top choice for many relocating from the UK.
Chinese family offices are selling assets in the US and moving to Dubai.
Barclays is experiencing double-digit growth in the number of family offices in the UAE.