Asia’s ultra-rich having second thoughts on Dubai as war rages

Many of Asia’s richest families are reconsidering their exposure to Dubai as the Iran war rattles the city that has attracted billions from across the region in recent years. Several consultants told Bloomberg News they are getting calls from clients seeking to delay relocation plans while others are exploring ways to reduce their investments in an area once considered safe and stable. Those who are already in Dubai are drawing up contingency plans in case the turmoil escalates. Asian investors who went to the Middle East for investment opportunities and tax advantages “are re-thinking their decisions and probably moving their money back to Hong Kong or Singapore,” said Nick Xiao, chief executive officer of Hong Kong-based multi-family office Annum Capital. Dubai’s ascent as a burgeoning finance and wealth hub faces a test as the U.S.-Israeli war with Iran hits close to home. Fighting has intensified for a second week as countries from Saudi Arabia to Bahrain came under renewed attacks. A drone strike caused a fire near the U.S. consulate in Dubai last week, and thousands of flights to the area have been scrapped though airlines are trying to resume them. Family Office wealth hangs in the balance The city’s stunning growth has lured the global rich along with a clutch of banks and Wall Street money managers. The United Arab Emirates — which includes Abu Dhabi — ranked among the world’s fastest-growing booking centers for financial assets in 2024, according to Boston Consulting Group. The firm estimates about $700 billion from overseas investors were booked in the UAE. Dubai alone is home to family offices that control more than $1.2 trillion. Asian wealth has become a significant driver of that expansion. About a quarter of the 2,270-plus foundations set up in the UAE have Asian ownership, according to Yann Mrazek, managing partner at Dubai-based wealth advisory firm M/HQ. Asia accounted for 47% of all multinational companies attracted by the Dubai International Chamber in 2025, according to a statement by the entity. Firms from Tokyo-based Nomura Holdings, as well as DBS Group Holdings, and Oversea-Chinese Banking Corp. — Singapore’s two largest lenders — have expanded their operations in Dubai to cater to rising demand from the wealthy. The war is now forcing a reassessment for many Asian families. “It’s definitely a wake-up call,” said Felix Lai, principal of Hong Kong-based multi-family office JMS Group. “People might need to rethink their decision to move to the Middle East with their family and money, though it is too early to make a decision.” Lai arranged a private jet for 15 clients to fly from Oman to Hong Kong within a few days, at a cost of about $300,000. “They don’t even care about the pricing,” Lai said. “They just want to leave.” While many interviewed by Bloomberg News said they had prepared for occasional disruptions in the Middle East before moving, hearing explosions and watching drones and rockets being intercepted mid-air forced a review. Tamour Pervez, who relocated to Dubai less than two years ago to manage money for a Pakistani family in the agricultural business, said things are now up in the air. “We were looking to close a deal this month, but that is now on hold,” said Pervez. “If it lasts for several weeks, deals could start falling through.” Patrick Tsang, who runs his own family office and founded the Ambassadors Club in Hong Kong in 2023 to promote links with the Middle East, said the city’s reputation could take a hit from a prolonged war. That may prompt some expats to leave, just as many left Hong Kong following pro-democracy riots several years ago. “I think there will be a migration,” Tsang said. “If you’re an expat, why would you take the risk with your family?” The UAE has also become popular for well-heeled residents of the U.K. as the nation has sought to hike taxes on its wealthy. A Bloomberg analysis of 5 million company filings shows a big spike in departing business leaders, with the UAE ranking as the top destination, alongside wealth hubs such as Switzerland. Those include Nassef Sawiris, the co-owner of the Premier League’s Aston Villa football club, who is splitting his time between the UAE and Italy, as well as Shravin Mittal, the 39 year-old scion for one of India’s biggest fortunes. Meanwhile, Bluecrest Capital Management founder Michael Platt now calls the UAE home after ditching his residency in the U.K. crown dependency of Jersey. Both Sawiris and Mittal — whose family controls Indian telecommunications giant Bharti Airtel — have set up firms to help manage their wealth in Abu Dhabi. Significant Indian wealth is located in the UAE, with several global wealth managers having dedicated non-resident Indian desks to manage those relationships. Some investors are looking to reduce their exposure in the region as a precaution, though others may see this as a buying opportunity, said Islay Robinson, founder and chief executive officer of Enness Global, a financing service for high-net-worth individuals. Regional risk shakes investor confidence Dubai stocks have taken a hit, after reopening following a two-day closure. The Dubai Financial Market General Index closed 4.7% lower on Wednesday, the sharpest drop since May 2022, and extended losses later in the week. The benchmark had more than doubled since the start of 2020, powered by growing consumption, a property rally and expanding financial services. While the attacks have challenged the UAE’s reputation as a stable commercial hub, some investors and residents told Bloomberg News they think the country’s strong infrastructure and governance will help it recover, and possibly come out stronger. Any extended retreat from Dubai will depend on how long the war lasts. “If uncertainty drags on for a few weeks, some companies may pause expansion in the interim,” said Nirbhay Handa, chief executive officer of Multipolitan, a migration service for wealthy people, with offices in the Middle East.

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Asia’s ultra-rich having second thoughts on Dubai as war rages