ArmInfo. Wealthy Asian citizens have decided to postpone relocation to Dubai and are looking for ways to reduce their assets in the Middle East, Bloomberg reports, citing investment firm representatives.
In recent years, according to Bloomberg, Dubai has become a preferred wealth accumulation hub for entrepreneurs and wealthy families from Asia. However, the ongoing military conflict between the US and Israel and Iran has called the city's reputation as a safe financial and investment hub into question, the agency notes.
According to the Boston Consulting Group, the UAE will be among the fastest-growing financial asset hubs in the world by 2024. A significant driver of this growth, Bloomberg notes, is "Asian wealth." Dubai-based consulting firm M/HQ estimates that individuals from Asian countries own about a quarter of the more than 2,270 funds registered in the UAE.
Now, Asian investors are reconsidering their strategy and are likely moving their money back to Hong Kong or Singapore, Nick Xiao, CEO of Hong Kong-based Annum Capital, told Bloomberg. Islay Robinson, CEO of Enness Global, suggested that this is merely a precautionary measure.
At the same time, some of the agency's sources believe that, despite the escalation, the UAE's developed infrastructure and governance system will help the country quickly recover and possibly strengthen its status as a stable financial center.
Israel and the US have been striking Iranian territory since February 28. In response, Iran began attacking Israel, as well as US military bases in Arab states, including the UAE. In addition to military infrastructure, civilian targets were also damaged, including the Burj Al Arab hotel and the airport in Dubai. UAE President Mohammed bin Zayed Al Nahyan declared his country to be in a state of war.
