US-Iran War Fears Prompt Wealthy Asians To Move Assets Out Of Dubai: Report

Last Updated:March 06, 2026, 14:06 IST

Iranian missile and drone attacks on the UAE prompt wealthy Asian investors to move assets to Singapore and Hong Kong, fearing UAE's stability amid regional tensions.

As Iranian missile and drone attacks targeted the United Arab Emirates (UAE) amid escalating tensions in West Asia, wealthy Asian investors and entrepreneurs have started exploring ways to move assets out of Dubai to financial hubs such as Singapore and Hong Kong, news agency Reuters reported citing officials familiar with the matter.

Soon after the first attacks last week, two Indian entrepreneurs based in Dubai attempted to transfer more than $100,000 each from their local bank accounts to Singapore to hedge against potential risks. However, technological glitches in the aftermath of the strikes initially disrupted the transfers, the individuals told the news agency, requesting anonymity due to the sensitivity of the matter.

One of the entrepreneurs later managed to move the funds through another Emirates-based bank.

Scores of other wealthy Asians are making enquiries or taking similar steps to move their Dubai-parked assets to the regional financial hubs, industry advisers and lawyers said, as the US-Israel war on Iran clouds the Gulf’s safe-haven aura and rattles investors.

While the rich typically diversify their investments across regions and asset classes, they choose where to be based depending on tax, regulatory, privacy and operational considerations.

Dubai has in recent years emerged as a major wealth hub for Asian entrepreneurs and rich families, particularly from China, drawn by its favourable tax policies, regulatory environment and strong infrastructure. The Gulf’s booming property market has also attracted significant investment.

But recent attacks on Dubai and Abu Dhabi have led some investors to reconsider the UAE’s reputation as a stable financial safe haven.

Singapore-based private wealth lawyer Ryan Lin told Reuters that six or seven of his 20 Dubai-based clients, each with about $50 million in assets on average, contacted him this week about moving funds to Singapore. Three of them are planning immediate transfers, he said.

Iris Xu, principal at global corporate services firm Anderson Global, said 10 to 20 family offices had approached her firm this week about moving assets from the Middle East back to Singapore amid fears the conflict could drag on.

Family offices are one-stop firms that manage the portfolios of the wealthy.

“Dubai was always about tax benefits but now I think the tax benefits may not be the top priority for them," she said.

Some wealth advisers said the concern is partly psychological. “Flying back and forth will be a challenge even if the conflict ends tomorrow. It is a confidence thing," a Singapore-based wealth management adviser told Reuters.

However, not all experts believe a major capital flight is underway. Dhruba Jyoti Sengupta, chief executive of Dubai-based WRISE Private Middle East, told Reuters the firm had not seen serious discussions about large-scale asset withdrawals.

“They are sophisticated global investors, already diversified internationally, but deeply invested … in the UAE’s growth story," he said. “Despite the broader geopolitical turmoil in the region, clients are feeling safe and secure."

Leading Singapore-based wealth managers, Bank of Singapore and DBS Group said their clients were closely observing the developments in the region and were taking a wait-and-watch approach, for now.

The UAE’s central bank governor Khaled Mohamed Balama also said the country’s banking and financial sector remained strong and stable, with banks and insurers operating normally despite regional tensions.

As the UAE scrambled to maintain its safe-haven status, some were going ahead with their expansion plans in the Emirates.

Jeremy Lim, co-founder of GrandWay Family Office, is in the process of opening a family office in Abu Dhabi and said his plans have not changed – as long as the UAE does not become directly involved in the conflict and barring any further escalation from Iran.

“The real deal-breaker for businesses would be if the UAE were to…become directly involved alongside one side in a conflict," said Lim.

(With inputs from agencies)

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