War in Middle East giving reasons to super rich to consider Hong Kong
War in the Middle East is giving the super-rich one more reason to reconsider Hong Kong, where authorities are trying to reclaim the lost allure.
Anmol Goel, the head of a London-based family office, said his firm was planning to open an outlet in the United Arab Emirates this year to join money managers that have flocked to the Gulf. Then the war began.
"We were setting up a new holding company, acquiring banking assets, and purchasing properties. Everything was finalised," said Goel, the chief executive officer of GACS Ltd., who attended a wealth forum in Hong Kong this week. "It's still too early to jump to conclusions, but this is what brought me to Hong Kong."
War in the Middle East is giving the super-rich one more reason to reconsider Hong Kong, where authorities are trying to reclaim the allure that was lost in recent years amid protests, political controls and pandemic restrictions. They've been pitching the financial hub's low taxes, wide talent pool and a booming equities capital market to bring the wealthy back.
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A slew of events in Hong Kong this week show the Asian financial hub is regaining traction, especially as investors look for alternatives to Dubai and Abu Dhabi amid a war that's showing few signs of easing. Singapore is also set to benefit if more money flees the Middle East. Still, many families are taking a wait-and-see approach to their portfolios.
"We are evaluating Zurich, Singapore, and Mumbai as backup entities," Goel said after attending the Wealth for Good summit. "People say these places are boring, but boring is the new sexy."
XinXi Asset Management, a newly established firm focusing on family offices, is helping at least seven clients move more than $100 million in combined assets from Dubai to Hong Kong, according to Chief Executive Officer Joel Tan. Tan also received six inquiries from Chinese clients seeking to sell their Middle Eastern properties this week alone. Meanwhile, the firm has scrapped its plans to open a Dubai branch despite having started the licensing paperwork due to the war.
Hong Kong's rebound is reflected in the wave of new family offices, which rose 25% to 3,384 at the end of last year from 2023. Each of them manages at least $10 million, according to a Deloitte survey commissioned by the local government.
