Dubai’s wealth hub status tested as advisors help clients evacuate assets

Dubai has been among the fastest-growing cities for attracting global ultra-high-net-worth wealth over the past decade, but advisors are now crafting sudden exit plans for clients as the emirate faces attacks from Iran.

Iran’s drone strikes and missiles fired at Dubai over the past month have disrupted the city’s financial systems. Routine wire transfers have been delayed with some taking nearly ten business days, according to Wealthspire Family Office SVP Joshua Shoshan, who has been helping some clients unwind residency in Dubai amid the geopolitical tensions.

“We faced the challenge of a client wanting to move out of Dubai with physical assets such as gold, which became effectively immobile due to the lack of available logistics providers,” Shoshan told InvestmentNews. “The clients now better understand a critical but previously overlooked point — ownership of assets does not guarantee access or portability in a crisis.”

Wealthspire is a New York-based RIA with nearly $600 billion in assets under management. The company says its family office division currently serves over 300 families representing close to $50 billion in total assets under management (AUM), with an average family relationship exceeding $130 million in AUM.

“Exit planning is underestimated because in stable conditions, jurisdictions like Dubai function exceptionally well. However, recent events demonstrate that leaving is fundamentally more complex than entering,” said Shoshan. “In the immediate aftermath of the war-related sudden disruption, even basic logistics became challenging —transportation options were limited, timelines compressed, and families were forced to make personal and financial decisions under significant uncertainty and fear.  

Banks such as JPMorgan Chase, Rothschild & Co. and Morgan Stanley have expanded their presence in Dubai over the past few years as the UAE’s friendly regulations attracted wealth expats from around the globe. Speaking at an event in November hosted by the Dubai Chamber of Commerce, former Barclays CEO Bob Diamond descrobed Dubai as a top destination for wealthy Londoners relocating due to UK tax policy changes.

Bill Connor, who works out of the New York office for Sax Wealth Advisors, a New Jersey-based RIA with roughly $3.5 billion in assets under management, says “[Dubai’s] attractive tax policies and business friendly environment are not likely to change, and this creates a desire to maintain connections,” and that, “if the war is resolved in the near future the impact will likely be relatively limited.” 

In response to the conflict, Wealthspire has identified Singapore, Switzerland, the United Kingdom, Cayman Islands, and the United States as jurisdictions where capital is flowing towards amid the Iran War’s impact on Dubai and the broader Gulf region. Shoshan noted, however, that “shifting assets to the U.S. introduces complexities—particularly around tax exposure for non-U.S. investors.” 

UAE officials confirmed that two people were killed Thursday when shrapnel fell from an intercepted missile in Abu Dhabi, which shares a border with Dubai. The UAE has reported more than 2,000 Iranian missile and drone attacks in the past few weeks, most of which were intercepted, though a handful caused debris impacts in Dubai and Abu Dhabi, according to the New York Times.

“If there are significant attacks that lead to substantial damage it will dent the image of Dubai as a safe location and attractive locale for wealthy individuals and families,” said Connor. “Dubai in particular would be at risk as they have less commodity resources and depend on the attractiveness of the city as a financial hub. The governments in the GCC [Gulf Cooperation Council] are aware of the potential risks and are taking steps to mitigate the impact.”