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.

Asia 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 US-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 US consulate in Dubai last week, and thousands of flights to the area have been scrapped though airlines are trying to resume them.

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 Inc., as well as DBS Group Holdings Ltd., 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.”

Source / Read more at: Economic times