Affluent Asian investors are increasingly exploring ways to move funds out of Dubai following recent Iranian missile and drone attacks on the city.
Shortly after the strikes last week, two Indian entrepreneurs living in Dubai attempted to transfer more than $100,000 each from local bank accounts to Singapore as a precaution against potential instability. Both individuals, who spoke anonymously due to the sensitivity of the issue, said their initial attempts were delayed by technical disruptions linked to the attacks. One later succeeded in completing the transfer through a different Emirates-based bank.
According to wealth advisers and lawyers, many other high-net-worth Asians are now making enquiries or considering similar moves. Some are looking to relocate assets from Dubai to established financial centres such as Singapore and Hong Kong, as the U.S.-Israel conflict with Iran raises questions about the Gulf’s reputation as a safe haven for wealth.
Historically, wealthy investors diversify across geographies and asset classes, but decisions about where to base assets also depend on factors such as taxation, regulatory frameworks, privacy and operational stability.
In recent years, Dubai has become a major hub for Asian wealth, particularly among Chinese entrepreneurs and business families attracted by favourable tax policies and business-friendly regulations. The region’s property boom and infrastructure development have also made the Gulf an attractive investment destination.
However, the recent attacks on Dubai and Abu Dhabi have prompted renewed scrutiny of the United Arab Emirates’ perceived stability.
Ryan Lin, a Singapore-based private wealth lawyer, said six or seven of his roughly 20 clients with assets in Dubai contacted him this week. Each client holds about $50 million in assets, and three are already planning to transfer funds to Singapore. One client, he said, is assessing how quickly they could relocate their entire portfolio.
Iris Xu, a principal at global corporate and fund services firm Anderson Global, reported a similar pattern. She said between 10 and 20 family offices have approached her firm this week about shifting assets back to Singapore from the Middle East due to fears that the conflict could escalate. Family offices typically manage the investments and affairs of wealthy families.
“Tax advantages once made Dubai particularly attractive,” Xu said, “but now security and stability are becoming a bigger priority.”
A Singapore-based wealth adviser, who declined to be named, said they had already spoken with 13 UAE-based clients, with more than half seriously considering transferring assets to Singapore.
“Even if the conflict ended tomorrow, travel and operational disruptions could persist,” the adviser said. “Ultimately, it’s about investor confidence.”
Grace Tang, CEO of Phillip Private Equity, noted that many of her mainly Asian clients are increasingly cautious. Around 10 to 20 have asked about relocating wealth to Singapore in order to protect their capital.
Not everyone expects capital flight
Some wealth managers say the situation has not yet triggered widespread withdrawals from the UAE.
Dhruba Jyoti Sengupta, CEO of Dubai-based WRISE Private Middle East, said his firm has not seen significant signs of clients moving funds out. Many investors, he said, remain confident in the UAE’s long-term economic outlook.
“These are globally diversified investors who are still strongly committed to the UAE’s growth story,” Sengupta said. “Despite regional tensions, they continue to feel secure.”
The UAE’s central bank governor, Khaled Mohamed Balama, also sought to reassure markets, stating that the country’s banking and financial system remains strong and stable. He said banks, financial institutions and insurers are operating normally despite the regional developments.
Major Singapore wealth managers such as Bank of Singapore and DBS said their clients are currently monitoring the situation but largely adopting a wait-and-see approach.
Meanwhile, some investors continue to move forward with expansion plans in the Emirates. Jeremy Lim, co-founder of GrandWay Family Office, said he is still planning to establish a family office in Abu Dhabi. His plans would only change if the UAE were to become directly involved in the conflict or if tensions escalated significantly.
“The real turning point for businesses would be if the UAE itself became an active participant in the conflict,” Lim said.
