Why private bankers are heading towards the UAE

Global and regional banks are intensifying investments in the UAE to capture a larger slice of the expanding wealth management market. With flexible visa programmes, a zero personal income tax policy, attractive investment incentives, a luxurious lifestyle, and a favourable time zone for trading across major markets, it’s evident why the UAE has outpaced other countries in this sector.

A wave of high-net-worth individuals (HNWIs) flocked to Dubai during the pandemic — the city shunned lockdowns for the most part and vaccinations were easily available — and the trend gathered pace when Russia invaded Ukraine. More recently, billionaires have flocked to Abu Dhabi, which has emerged as the world’s newest wealth haven.

Thousands of HNWIs have set up special-purpose vehicles (SPVs) in the Abu Dhabi Global Market (ADGM) in recent years, making the UAE capital the newest hub of billionaires looking to safeguard their assets, Bloomberg reported last year. Abu Dhabi’s financial centre now has more than 5,000 SPVs, compared with just 46 in 2016, the news agency said, quoting data compiled by wealth advisory firm M/HQ.

Favourable government policies have also helped. “HNWIs like to operate in markets where they’re treated as partners,” Philippe Amarante, Henley & Partners’ Middle East Managing Partner told on Bloomberg TV in September. “So, it all comes together in as a perfect equation, and I’d say that’s the key instrument of attraction for the UAE.”

Dubai ranks as the 21st wealthiest city globally, boasting the highest concentration of resident millionaires in the Middle East, with 72,500 individuals, according to a report from Henley & Partners released in May.

Over the past decade, the city has seen a remarkable 78 per cent increase in its millionaire population and is now home to 212 centi-millionaires — individuals with net worths of $100 million or more in investable assets — as well as 15 billionaires, according to the report produced in collaboration with global intelligence firm New World Wealth.

Around 4,500 millionaires are expected to move to the UAE this year, one of the highest on record. The UAE has also emerged as among the top five destinations for net inflows of HNWIs in 2023, along with Australia, Singapore, United States and Switzerland, according to the report.

“The response of private banks, coming particularly to the Middle East and the UAE, is just a response to the millionaires on the move,” Amarante told Bloomberg.

A piece of the pie

In the most recent example, JP Morgan announced in September that it has launched a new private banking team in Dubai, capitalising on the city’s rapidly increasing reputation as a global centre for investment and innovation.

This move by the prominent US investment bank follows recent expansions by UBS, Deutsche Bank, and Lombard Odier, highlighting the strong belief in the region’s capacity to attract the world’s wealthy individuals. UBS said it was strengthening its wealth management team in the Middle East with 10 new hires.

In the past 12 months, Bank of Singapore have grown the number of bankers at its DIFC branch by about 25 per cent, according to Ranjit Khanna, Head of Private Banking Europe & Middle East and Chief Executive, DIFC Branch.

In June, Swiss wealth manager Julius Baer bolstered its Dubai operations by recruiting senior bankers from UBS and JPMorgan, specifically to enhance its services for wealthy Indian clients. With an increasing number of affluent Indians residing abroad, particularly in the UAE, this market segment presents a lucrative opportunity for growth.

“The UAE as a location is of great importance to us,” Kunal Sumaya, Head of Global NRI at Julius Baer, told Bloomberg at the time.

It’s clearly also of great importance to rival firms. Banco Santander is boosting private banking operations in Dubai. HSBC added 100 bankers in the region last year and plans hire “opportunistically” in the coming months, though there are some challenges it needs to overcome, Bloomberg reported.

Regionally, too, players have taken notice. Lunate, the Abu Dhabi-based alternative investment fund with more than $100 billion in assets, is partnering with Bank of New York Mellon on a fintech venture to tap into the burgeoning market for wealth management.

“The Middle East has for some time now, been a fast-growing global hub for innovation, attracting global interest and investment. Our dedicated local team strengthens our ability to serve our clients better,” Karim Rekik, JPM’s Head of Emerging Markets and Middle East, International Private Bank, was quoted in a statement.

The bank added it had plans “to grow the team steadily in the coming years,” without providing a specific figure.

- With input from Bloomberg