Chinese Wealthy Individuals Flock to Dubai for Business Opportunities

The wealthiest families in Asia are quickly moving towards the Middle East in order to increase their wealth and expand their investments.

According to Reuters, Dubai is becoming increasingly popular among Chinese wealth managers, with Noah Holdings, a leading Chinese wealth manager responsible for managing $23 billion in client assets, expected to obtain a business license in Dubai by the end of the year.

Currently, Landmark Family Office, which is based in Hong Kong, has intentions of establishing a branch in Dubai within the next few months.

Dubai is putting in more effort to meet the needs of the wealthiest individuals globally by establishing a specialized center for family wealth in March 2023. This center aims to support high-net-worth individuals (HNWIs) and family businesses in addressing digitalization, cultural matters, governance, and planning for future generations in the United Arab Emirates (UAE).

In Asia, Hong Kong and Singapore have long been known as popular locations for wealthy individuals to store their assets. However, Dubai is quickly becoming just as significant. Not only do wealth managers find it appealing, but millionaires and billionaires themselves are increasingly attracted to the city. This is due to its favorable business atmosphere, minimal tax rates, advantageous geographical position between Europe and Asia, and availability of top-notch luxury amenities.

One of the positive policies is the implementation of a golden visa system that allows foreign talents to reside and work in the UAE for either five or ten years. Furthermore, the existence of “free zones” is also an attractive aspect for global entrepreneurs and investors as it provides tax exemptions, full company ownership for foreign investors, low customs tariffs, and no income tax.

Dubai has become a sought-after place for relocation due to the favorable political and economic ties between China and the UAE. This is especially significant as China’s relationship with the US has become tense. Being China’s largest non-oil trading partner and third-largest foreign investor, the UAE’s strong support for China’s Belt and Road Initiative has further strengthened their alliance. Additionally, Dubai hosts over 6,000 Chinese companies, highlighting the deep economic integration between the two nations.

Dubai is expected to see a significant increase in its population of extremely wealthy individuals, known as centi-millionaires, with a growth rate of 78 percent over the next ten years, which is the highest in the world according to Henley & Partners. As China sees a notable increase in the number of millionaires leaving the country, Dubai could become their preferred destination to establish a second residence.

(Jing Daily)