Asia’s Wealthy Reassess Dubai Investments Amid Escalating Iran Conflict
Many affluent families from Asia are reevaluating their investments in Dubai as the ongoing conflict involving Iran creates uncertainty in the region. The city, which has drawn billions in investment from across Asia in recent years, is now facing challenges that have prompted a shift in strategy for some investors.
Concerns Over Stability
Consultants report an uptick in inquiries from clients looking to postpone relocation plans or reduce their investments in Dubai. This shift comes as the US-Israeli conflict with Iran escalates, leading to increased military activity in the region. A recent drone strike near the US consulate in Dubai has heightened concerns, resulting in the cancellation of thousands of flights, although airlines are working to resume operations.
Nick Xiao, CEO of Hong Kong-based multi-family office Annum Capital, noted that investors who initially moved to the Middle East for favorable tax conditions and investment opportunities are reconsidering their positions. Many are contemplating a return to financial hubs like Hong Kong or Singapore.
Dubai’s Financial Landscape
Dubai has emerged as a significant financial center, attracting global wealth and numerous banks. According to the Boston Consulting Group, the United Arab Emirates (UAE) is one of the fastest-growing booking centers for financial assets, with an estimated $700 billion from foreign investors recorded in 2024. Dubai alone hosts family offices managing over $1.2 trillion.
Asian wealth has played a crucial role in this growth. Approximately 25% of the more than 2,270 foundations established in the UAE are owned by Asian investors. In 2025, Asia accounted for 47% of all multinational companies attracted by the Dubai International Chamber.
Major financial institutions, including Nomura Holdings Inc. and Singapore’s DBS Group Holdings Ltd., have expanded their operations in Dubai to meet the rising demand from wealthy clients.
Reassessment of Investments
The ongoing conflict has prompted many Asian families to reassess their investments. Felix Lai, principal of Hong Kong-based multi-family office JMS Group, described the situation as a “wake-up call.” He indicated that families may need to reconsider their decisions regarding relocation to the Middle East, although he acknowledged that it is too early for definitive conclusions.
Lai recently arranged a private jet for 15 clients to return from Oman to Hong Kong at a cost of approximately $300,000. He noted that the urgency of their situation outweighed concerns about the expense.
Impact on Business Deals
Tamour Pervez, who moved to Dubai less than two years ago to manage investments for a Pakistani agricultural family, expressed uncertainty about ongoing business transactions. He mentioned that a deal anticipated for closure this month is now on hold due to the current instability. He warned that if the situation persists, further deals could be jeopardized.
Patrick Tsang, who operates his own family office and founded the Ambassadors Club in Hong Kong, suggested that the city’s reputation could suffer from prolonged conflict. He compared the potential exodus of expatriates to the mass departure from Hong Kong following pro-democracy protests in previous years.
Investor Sentiment
OCBC’s private banking division reported that clients are closely monitoring developments but are adopting a cautious approach. This sentiment mirrors that of wealthy clients at DBS, Singapore’s largest bank.
The UAE has also become a favored destination for wealthy individuals from the UK, particularly as the British government has increased taxes on affluent citizens. A review of company filings indicates a significant rise in business leaders relocating to the UAE, which is now considered a top destination alongside Switzerland.
High-profile individuals such as Nassef Sawiris, co-owner of Aston Villa, and Shravin Mittal, heir to one of India’s largest fortunes, have established operations in Abu Dhabi to manage their wealth. The UAE is home to a substantial Indian diaspora, with many global wealth managers catering to this demographic.
Market Reactions
Some investors are looking to minimize their exposure to the region as a precaution, while others view the situation as a potential buying opportunity. Islay Robinson, CEO of Enness Global, noted that market conditions are prompting varied responses among high-net-worth individuals.
The Dubai Financial Market General Index recently experienced a significant decline, closing 4.7% lower after a two-day trading suspension. This drop marks the steepest decline since May 2022, extending losses into the following week. The index had previously more than doubled since early 2020, driven by increased consumption and a booming property market.
Despite the challenges posed by the conflict, some investors believe that Dubai’s robust infrastructure and governance will facilitate a recovery. However, the duration of the conflict will significantly influence the extent of any retreat from the city.
Nirbhay Handa, CEO of Multipolitan, a migration service for affluent individuals, indicated that if uncertainty persists, some companies may pause their expansion plans. He expressed optimism that stability would return to Dubai once the situation improves.
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Published on 2026-03-09 15:48:00 • By Editorial Desk
