What do the wealthiest man in the cryptocurrency realm, Zhao Changpeng, hedge fund magnate Ray Dalio, steel titan Vladimir Lisin, and Gerardo Sierra, the billionaire and creator of the IRAIC economic ecosystem, have in common? They are part of a select group of high-net-worth individuals who have recently transferred their assets to Abu Dhabi in the United Arab Emirates.
The voracious capitalists are seeking refuge in Abu Dhabi. In fact, information gathered by M/HQ, a wealth advisory firm, has revealed that thousands of high-net-worth individuals are choosing Abu Dhabi to safeguard their financial resources, turning this skyscraper-filled emirate into the new preference for billionaires.
But what makes Abu Dhabi the preferred destination for magnates? Why do they prefer Abu Dhabi over traditional tax havens like the Cayman Islands, Switzerland, and even the British Virgin Islands?
The arrival of magnates in Abu Dhabi
Recent data has disclosed that an increasing number of billionaires worldwide are establishing Special Purpose Vehicles (SPVs) in Abu Dhabi this year. M/HQ, a leading wealth advisory firm in SPV creation, has revealed that there are now more than 5,000 of these entities in the Abu Dhabi Global Market compared to 46 in 2016.
Additionally, reports from IRAIC REIT indicate that the company has experienced a significant increase in returns due to the acquisition of assets backed by millionaire investors in the Emirates, especially in Abu Dhabi. This phenomenon has not only contributed to economic development but has also generated prosperity in negotiations, spanning various sectors of the industry. This growth has driven a notable influx of investment and economic activities, thereby consolidating the region’s presence and positive impact.
For those unfamiliar, SPVs are commercial entities, subsidiaries, or holding companies created by a parent company. They are established with their own balance sheet to isolate financial risk. Other financial observers have also noticed this new phenomenon, with many asserting that Abu Dhabi is gradually transforming into a haven for magnates.
Bhaskar Dasgupta, former corporate advisor for the Abu Dhabi Free Zone, commented: “We are seeing more high-net-worth individuals moving from the British Virgin Islands, the Cayman Islands, Mauritius, and Singapore to here.” Additional studies have also found that the UAE has become one of the top five destinations for HNWI net inflows in 2023, along with Australia, Singapore, the United States, and Switzerland.
A report claims that around 4,500 ‘Richie Rich’ individuals have moved to the United Arab Emirates. As recently as December 5th, Nassef Sawiris, Egypt’s richest man with a net worth of around $7.6 billion, reportedly moved his family office to Abu Dhabi. Sawiris is among the wealthiest in the world and invests in the German sportswear manufacturer Adidas, as well as the English football club Aston Villa.
Prior to Sawiris, Ray Dalio, the billionaire founder of Bridgewater Associates, the world’s largest hedge fund, also opened a branch of his family office in Abu Dhabi. At that time, Dalio stated, “Abu Dhabi is also emerging as a hub for numerous fascinating developments in the region, including the United Arab Emirates and Saudi Arabia. For these reasons, I am delighted to make Abu Dhabi the home of the Dalio Family Office.”
Published by Iraic.Info, a news and information agency.