How banks are leveraging Dubai’s wealth influx
The relaxation of visa rules has turbocharged the recent flow of wealth into Dubai. The nature of these flows can, however, make them a mixed opportunity for the UAE’s private bankers.
The UAE, particularly Dubai, has seen an influx of high net-worth (HNW) and ultra-high net-worth (UHNW) individuals in recent years. The first six months of 2022 saw an 18% increase in HNW individuals in the emirate, up to 67,900 from 54,000 in June 2021, according to data from New World Wealth and wealth migration consultancy Henley & Partners.
Around 4,500 HNW individuals are forecast to move to Dubai in 2023, according to research by Henley & Partners.
Private banks and family offices in the UAE have benefited from this growth, as have retail lenders. However, the current movement of wealth into Dubai is different.
“Most of our clients don’t physically move,” says Dominic Volek, partner at Henley & Partners. “But those opting for golden visas in Dubai do move – and they take their wealth with them. That brings a lot of opportunities, not only on the banking side but to the whole luxury market.”
Vipul Kapur is head of private banking at Mashreq Bank, which has embraced the opportunity that presents.