Dubai Attracts Asia’s Elite with Business-Friendly Policies
The city of Dubai has emerged as a preferred destination for Chinese wealth managers and high-net-worth individuals (HNWIs), driven by its pro-business environment, low tax rates, and strategic location. With initiatives like the golden visa system and tax-exempt free zones, Dubai is rapidly becoming a global hub for wealth management and investment.
Key Developments and Trends
- Wealth Management Firms Setting Up in Dubai: Leading Chinese wealth manager Noah Holdings, managing $23 billion in assets, is on track to secure a business license in Dubai. Similarly, Hong Kong-based Landmark Family Office plans to establish an office in the city.
- Dubai’s Family Wealth Center: Launched in March 2023, this center assists HNWIs and family businesses in navigating digitalization, cultural, governance, and succession planning challenges in the UAE.
- Attracting Global Millionaires and Billionaires: Dubai’s appeal extends beyond wealth managers to millionaires and billionaires themselves, attracted by the city’s supportive business environment, luxury facilities, and convenient location between Europe and Asia.
- Golden Visa and Free Zones: The golden visa system offers long-term residence for foreign talents, while free zones provide tax exemptions and full company ownership, drawing global entrepreneurs and investors.
- China-UAE Relations: The strengthening political and economic ties between China and the UAE, against the backdrop of strained China-US relations, have made Dubai an attractive relocation destination. China is the UAE’s largest non-oil trading partner and a significant foreign investor, with over 6,000 Chinese companies operating in the UAE.
- Rapid Growth of Wealthy Population: Dubai is projected to see a 78% increase in its centi-millionaire population over the next decade, the fastest growth rate worldwide, partly driven by the migration of Chinese millionaires.
Conclusion
Dubai’s strategic efforts to attract global wealth are paying off, as evidenced by the growing interest from Chinese wealth managers and HNWIs. The city’s favorable policies, combined with its position as a stable and luxurious destination, are reshaping the landscape of global wealth management and investment.
