Following increasing tensions with Iran and recent missile attacks, concerns among some wealthy Asian investors about investing in the Gulf region have increased. For this reason, many people are considering shifting their assets kept in Dubai to other safe financial centres. According to experts, this trend is especially visible among Asian businessmen and rich families.
Attempt to shift property from Dubai
According to the report, after the Iranian missile and drone attacks last week, two Indian entrepreneurs living in Dubai tried to transfer more than 1 lakh dollars from their bank accounts to Singapore. Their purpose was to protect against potential risk. However, this transfer could not take place initially due to technical problems that arose after the attacks. Later, one of the entrepreneurs succeeded in sending the money to Singapore through another bank in Dubai.
Singapore and Hong Kong are becoming options
According to industry consultants and lawyers, many wealthy Asian investors are exploring options to shift their assets held in Dubai to financial centers like Singapore and Hong Kong. In fact, Iran’s increasing conflict with America and Israel has made some investors cautious about the safe investment image of the Gulf region.
Dubai became the favorite center of Asian investors
Over the past few years, Dubai has emerged as a major wealth hub for Asia’s wealthy businessmen and families. Especially investors from China and other Asian countries have invested a large amount of capital here. The rapidly growing real estate and infrastructure market in the Gulf region has also attracted investors. According to the Central Bank of UAE, the total assets of the country’s banking and financial sector have exceeded 5.42 trillion dirhams (about 1.48 trillion dollars).
Some investors still in wait and watch mode
However, not all investors are in favor of withdrawing capital immediately. Many wealth management companies say that their clients are currently monitoring the situation and do not want to take any hasty decision. The Central Bank of the UAE has also said that the country’s banking and financial system is strong and stable and all banks and financial institutions are operating normally. In such a situation, many investors are waiting for the situation to become clear.