Asia’s Ultra-Rich and Dubai!

 

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. Many are 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. 

Dubai’s ascent as a finance and wealth hub faces a test as the US-Israeli war with Iran hits close to home. Fighting has intensified as countries from Saudi Arabia to Bahrain came under renewed attacks. A drone strike caused a fire near the US consulate in Dubai, and thousands of flights to the area have been scrapped, though airlines are trying to resume them. 

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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 centres for financial assets in 2024, according to Boston Consulting Group. The firm estimates that about US$700 billion from overseas investors were booked in the UAE. Dubai alone is home to family offices that control more than US$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.

Bottom of Form

Firms from Tokyo-based Nomura Holdings, as well as DBS Group Holdings, and OCBC, Singapore’s two largest lenders, have expanded their operations in Dubai to cater to rising demand from the wealthy. 

Some investors are looking to reduce their exposure in the region as a precaution, though others may see this as a buying opportunity.  Dubai stocks have taken a hit after reopening following a two-day closure. The Dubai Financial Market General Index closed 4.7 per cent lower recently, the sharpest drop since May 2022. The benchmark had more than doubled since the start of 2020, powered by growing consumption, a property rally and expanding financial services. 

While the attacks have challenged the UAE’s reputation as a stable commercial hub, some investors and residents told Bloomberg News they think the country’s strong infrastructure and governance will help it recover and possibly come out stronger. Any extended retreat from Dubai will depend on how long the war lasts. 

The crisis presents an opportunity for Kuala Lumpur or Singapore to step up their game. The safe, secure environment here provides an opportunity for funds and people to relocate. 

Reference:

Asia’s ultra-rich having second thoughts on Dubai as war rages, Bloomberg News, Bloomberg, 9 March 2026