Swiss family offices that manage assets for the ultra-wealthy are considering a move to Dubai amidst changing regulations and political debates in Switzerland. Ronald Graham, managing partner of law firm Taylor Wessing’s Dubai office, revealed that two large family offices, one with billions of dollars of assets, are exploring relocation to the United Arab Emirates due to the more favorable regulatory environment in Dubai. One family office has already completed the move.
The appeal of Dubai lies in its less stringent regulations and greater privacy for wealthy individuals. In Switzerland, family offices managing assets for multiple clients or exceeding certain thresholds face more onerous regulation as licensed portfolio managers. In contrast, Dubai offers a broader definition of “family”, allowing for more flexibility and privacy for family offices.
Recent political debates in Switzerland, including a referendum on imposing a 50% tax on large inheritances and gifts, have also contributed to the uncertainty for wealthy families. This, along with concerns about regulation, has prompted some families to reconsider Switzerland as a financial hub.
As a result, both single and multi-family offices are moving to Dubai or establishing branches there. The Dubai International Financial Centre reported that around 200 family offices joined the offshore financial center last year, bringing the total to 800.
Consultants and industry experts have noted the attractiveness of Dubai for family offices due to its high standard of living, entrepreneur-friendly economic system, and government incentives for investment companies. Changes such as the abolition of the UK’s non-dom regime and high taxes in European countries have also contributed to Dubai’s appeal.
While Switzerland remains a leading wealth management hub, recent developments threaten its competitiveness. Wealthy Americans are even considering moving assets to Switzerland as a contingency plan amidst uncertainty created by the Trump administration. Andermatt, a ski village in Switzerland, is gaining popularity due to its relaxed rules on foreign property ownership.
In conclusion, the shifting landscape of wealth management and taxation is leading family offices to consider new locations like Dubai, while some are still looking towards traditional hubs like Switzerland. It remains to be seen how these trends will shape the future of global wealth management.
