SINGAPORE: Soon after the first Iranian missile and drone attacks on Dubai last week, two Indian entrepreneurs based there tried to move more than US$100,000 (RM394,750) each from their local bank accounts to Singapore to hedge risk.
Technological glitches in the aftermath of the Iranian attacks initially scuppered those plans, the entrepreneurs, who did not wish to be identified due to the sensitivity of the matter, told Reuters.
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One of them said he managed to subsequently transfer the sum to his Singapore bank account via 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 of Singapore and Hong Kong, 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.
Towards that end, Dubai has emerged in recent years as a preferred wealth hub for entrepreneurs and rich families in Asia, mainly from China, as they look to take advantage of its favourable policies. Moreover, with a property and infrastructure boom, the Gulf region has also become an investment destination.
The trend is now under sharp scrutiny, as the attacks on Dubai and Abu Dhabi have thrown into doubt the United Arab Emirates’ (UAE) reputation for stability.
Singapore-based private wealth lawyer Ryan Lin said six or seven of his 20 Dubai-based clients, each holding an average of US$50 million in assets, contacted him this week, with three planning immediate asset transfers to the city-state.
One client is “checking how quickly they can transfer everything to Singapore”, Lin said.
