The trend of capital inflows and the migration of super wealthy to the UAE is not a short-term phenomenon and is here to stay for another decade, a senior Citi Private Bank executive has said.
The country ticks most boxes for institutions, ultra-high net worth individuals as well as family offices, and there is ample incentive for them to relocate to the Arab world’s second largest economy, James Holder, head of Citi Private Bank for UK, Europe, the Middle East and Africa, told The National.
“It's absolutely a crossroads of capital,” Mr Holder said. “From the UAE perspective, we think about this as a 10-year plus cycle.”
Deciding to move wealth or part of an enterprise from one country to another “takes a lot of unwinding”, he explained, making it a long-term commitment.
The stability of the Emirates and the security it provides in a fast-growing economic environment make it appealing for global investors who manage risk, Mr Holder said.
Investors are able to run their business, manage their capital and their family office operations from anywhere, meaning “the idea that capital is not mobile, I'm afraid, is for the fairies”, Mr Holder said. “Capital is more mobile than it has ever been before. The UAE has been a significant beneficiary of that over the past two to three years.”
Capital is flowing to the Emirates from across Citi Private Bank's client segments. “For the UAE, both for Dubai and Abu Dhabi, the amazing thing is that the interest and engagement is absolutely universal,” Mr Holder said.
“We see a broad range of Europeans choosing to move here for the safety, the security and the fiscal certainty. And we see Asian capital flowing here as well, so it is really broad-based.”
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