As Iranian missile and drone attacks targeted the United Arab Emirates (UAE) amid escalating tensions in West Asia, wealthy Asian investors and entrepreneurs have started exploring ways to move assets out of Dubai to financial hubs such as Singapore and Hong Kong, news agency Reuters reported citing officials familiar with the matter.

Soon after the first attacks last week, two Indian entrepreneurs based in Dubai attempted to transfer more than $100,000 each from their local bank accounts to Singapore to hedge against potential risks. However, technological glitches in the aftermath of the strikes initially disrupted the transfers, the individuals told the news agency, requesting anonymity due to the sensitivity of the matter.

One of the entrepreneurs later managed to move the funds through another Emirates-based bank.

Scores of other wealthy Asians are making enquiries or taking similar steps to move their Dubai-parked assets to the regional financial hubs, industry advisers and lawyers said, as the US-Israel war on Iran clouds the Gulf’s safe-haven aura and rattles investors.

While the rich typically diversify their investments across regions and asset classes, they choose where to be based depending on tax, regulatory, privacy and operational considerations.

Dubai has in recent years emerged as a major wealth hub for Asian entrepreneurs and rich families, particularly from China, drawn by its favourable tax policies, regulatory environment and strong infrastructure. The Gulf’s booming property market has also attracted significant investment.

But recent attacks on Dubai and Abu Dhabi have led some investors to reconsider the UAE’s reputation as a stable financial safe haven.

Singapore-based private wealth lawyer Ryan Lin told Reuters that six or seven of his 20 Dubai-based clients, each with about $50 million in assets on average, contacted him this week about moving funds to Singapore. Three of them are planning immediate transfers, he said.

Iris Xu, principal at global corporate services firm Anderson Global, said 10 to 20 family offices had approached her firm this week about moving assets from the Middle East back to Singapore amid fears the conflict could drag on.

Family offices are one-stop firms that manage the portfolios of the wealthy.

Source: World News in news18.com, World Latest News, World News