An increasing number of wealthy Chinese people are setting up family offices in the Gulf, a shift away from the historically popular Singapore. The number of family-related entities in Dubai’s offshore financial centre hit 1,000 at the end of the first half of this year, according to official figures, compared with 800 at the end of last year and 600 at the end of 2023, and over 2,000 currently in Singapore. There is no breakdown on origin, but advisers say that much of the rise can be attributed to Chinese individuals.
There seems to be two main points spurring the shift, with the first simply being the attractiveness of Dubai’s low tax rates. The second is more complex, and that is China’s potential systemic influence over Singapore, which appears less present in the Gulf states.
The relationship between China and the Gulf states is growing, particularly when it comes to the inter-connection of financial systems. Singapore, on the other hand, is conceivably more beholden to China’s influence which raises questions around the level of comfort some Chinese investors may feel in placing themselves there.