The wealth migration from Singapore to Dubai is well documented, driven by favourable tax policies, employment reforms under the golden visa scheme and lifestyle appeal.
But as capital continues to flow into the Gulf, a curious countertrend is emerging: several Middle East-based private banks are not scaling back their Asia presence. Instead, they’re strengthening their desks in Singapore.
Traditionally, Switzerland has been the preferred booking centre destination for many high and ultra-high net worth clients from the Middle East. But Singapore has stepped up and many bankers operating in the Middle East and Asia corridor say the need for diversification – a key theme in private banking – is now a major motivator.
With geopolitical risk, the collapse of Credit Suisse in 2023 and tighter compliance on account opening, a growing portion of Emirati wealth is being rehomed in Asia.
Building out Singapore
Regional giants, such as Emirates NBD and First Abu Dhabi Bank (FAB), already have Asia desks in Singapore, and both are expanding.
Emirates NBD appointed Sameer Deshpande as its new Asia head last year, while FAB private banking brought in Sanjay Shah from HSBC to replace Vikram Nimkar to lead its Asia efforts. While the roles themselves are not new, the moves suggest a renewed strategic focus on the region.
On paper, competing against established, large incumbents in Singapore, like UBS GWM and HSBC Global Private Bank - both managing hundreds of billions in assets under management and employing vast armies of private bankers - may seem daunting.
Regional players insist they are not starting from scratch though. Rather, they are responding to demand from an existing pool of clients.
Middle East demand
Middle Eastern family offices and ultra-wealthy clients are seeking more sophisticated products, the kind that Asia’s private banks have long specialised in. The palette of structured products, for example, is far more varied in Asia, where bankers are familiar with the complex structures that go beyond the vanilla flow products of equity-linked notes.
Singapore’s family office ecosystem is another draw. The 13O and 13U tax exemption schemes, alongside the variable capital companies (VCC) framework, continue to attract regional families setting up investment entities in the city-state.
Investment opportunities across Southeast Asia are also multiplying, particularly in the private credit and IPO markets, giving investors tangible reasons to maintain a booking presence in Singapore.
And the recent changes to the UK’s non-domiciled tax regime have added new momentum to the shift. The reforms have prompted a wave of wealthy to relocate, often to low-tax hubs like Dubai and Singapore.
UBS GWM said it has already seen increased inquiries from family offices exploring relocation options in light of the new UK tax rules.
‘Just a couple of weeks ago, I was in the Middle East with the US delegation. It was quite interesting to see and talk to some of the Middle Eastern investors, some of the largest sovereigns. They were all suggesting that they need to allocate and allocate more into Asia,’ Iqbal Khan, Apac president and co-president of UBS Global Wealth Management, said during his welcome address at the Asian Investment Conference in May.
A corridor of opportunity
Whether this momentum leads to more Middle Eastern private banks, such as Mashreq, establishing a physical base in Singapore remains to be seen. But the opportunity is evident.
Most recently, Dubai-based Jupiter Wealth opened a new entity in Singapore, hiring Akshay Mathur to lead the business, a move that underscores the deepening ties between the two regions.
And, just as many private banks have Asia desks in Switzerland, today’s environment of geopolitical uncertainty and globalised wealth management is making booking centre diversification not just prudent but necessary to the AUM growth strategy.
