Wealthy Asians are moving assets from Dubai to Singapore and Hong Kong due to fears over the Iran-Israel conflict, shaking the Gulf’s safe-haven status.
SINGAPORE/DUBAI: Wealthy Asian entrepreneurs and investors are actively moving assets out of Dubai following recent Iranian attacks, seeking safer havens in Singapore and Hong Kong.
Two Indian entrepreneurs attempted to transfer over USD 100,000 each to Singapore immediately after the strikes. “Technological glitches in the aftermath of the Iranian attacks initially scuppered those plans,” they told Reuters.
One entrepreneur succeeded in transferring the funds via another Emirates-based bank. This reflects a broader trend of capital flight enquiries from the Gulf.
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Industry advisers report scores of wealthy Asians are now exploring similar moves. The conflict has clouded Dubai’s safe-haven aura and rattled investor confidence.
Singapore-based private wealth lawyer Ryan Lin said several of his Dubai-based clients contacted him this week. “One client is ‘checking how quickly they can transfer everything to Singapore’,” he said.
Lin noted six or seven clients, each holding an average of USD 50 million in assets, made enquiries. Three are planning immediate asset transfers to the city-state.
Iris Xu of Anderson Global said 10 to 20 family offices enquired about moving assets back to Singapore. “Dubai was always about tax benefits but now I think the tax benefits may not be the top priority for them,” she said.
A Singapore-based wealth management adviser spoke to 13 UAE-based clients. More than half were serious about moving assets to Singapore due to shaken confidence.
“Flying back and forth will be a challenge even if the conflict ends tomorrow. It is a confidence thing,” the unnamed adviser said.
Phillip Private Equity CEO Grace Tang said her Asian clients are skittish. Between 10 and 20 have asked about moving wealth to Singapore to preserve capital.
Not all wealth managers see immediate capital flight. Dhruba Jyoti Sengupta of WRISE Private Middle East said clients remain confident in the UAE’s long-term resilience.
“They are sophisticated global investors, already diversified internationally, but deeply invested … in the UAE’s growth story,” Sengupta stated. He added clients feel “safe and secure” despite regional turmoil.
The UAE central bank governor said the financial sector remains resilient and stable. Khaled Mohamed Balama confirmed banks and insurers were operating normally without disruption.
Major Singapore banks reported a cautious stance from their clients. Bank of Singapore and DBS Group said clients are taking a wait-and-watch approach for now.
Some investors are continuing with expansion plans in the Emirates. Jeremy Lim is opening a family office in Abu Dhabi and said his plans remain unchanged.
“The real deal-breaker for businesses would be if the UAE were to…become directly involved alongside one side in a conflict,” said Lim. He will proceed barring further major escalation.
The Sun Malaysia
