Dubai emerges as global magnet for wealth migration and family office expansion

05/11/2025 01:11 AST

Dubai is rapidly cementing its status as a global hub for ultra-high-net-worth individuals (UHNWIs), with a surge in wealth migration fueling the rise of family offices across the emirate. As geopolitical uncertainty and economic shifts reshape global investment behavior, Dubai's appeal as a safe haven is driving both settlement and strategic financial structuring among the world's wealthiest.

Dr Nannette Hechler-Fayd'herbe, Chief Investment Officer at Lombard Odier, observes a clear uptick in the establishment of family offices in the UAE. "The data speaks for itself," she says. "We're seeing strong growth in the creation and domiciliation of family offices in the region, driven not only by people relocating here but also by the wealth being created locally - especially through the development of the non-oil sector."

Professionalising wealth management
Family offices are increasingly viewed as essential vehicles for managing multi-generational wealth. Hechler-Fayd'herbe notes that their rise reflects a broader trend toward professionalisation. "Setting up a family office facilitates wealth transfer and reduces reliance on a single founder or patriarch," she explains. "It introduces investment professionals who bring structure, strategy, and efficiency to wealth management."

Without such structures, investment decisions often lack cohesion, resulting in portfolios shaped more by circumstance than by deliberate strategy. "Family offices help create durable investment philosophies and processes," she adds, "and they optimise cost structures, making them a smart choice for long-term wealth stewardship."

Generational shifts in investment behaviour
The migration of wealth to Dubai is not just about geography - it's also generational. Hechler-Fayd'herbe highlights key differences in how older and younger generations approach investing. Baby boomers, shaped by an era of high fixed-income yields, still lean heavily on bonds. In contrast, younger investors prioritise sustainability, digital assets, and alternative investments. "They're digital natives," she says. "They're more open to crypto and less constrained by traditional asset classes. Sustainability is also a major theme for them, influencing both their values and their portfolios."

Investment outlook: Value and visibility Looking ahead, Hechler-Fayd'herbe expects financial assets to remain central to family office portfolios, especially as global interest rates trend downward. "Investors will increasingly seek value and catalysts for performance," she says. "Healthcare, for example, is a sector we believe is poised for a rebound, supported by demographic trends and improved policy visibility."

Emerging markets also present compelling opportunities. Despite recent underperformance in regions like India, she remains optimistic. "India's earnings are strong, and while valuations are high, we believe the market can still deliver," she says. More broadly, emerging markets offer attractive valuations, commodity exposure, and access to affordable technology - particularly from China.

"These markets are also more insulated from U.S. economic volatility," she adds, "which makes them strategically valuable in a diversified portfolio."

Dubai's legal and economic advantage
The UAE's legal and regulatory frameworks are also contributing to the rise of family offices. "The country offers institutional infrastructure for family governance, including family charters and business-friendly conditions," Hechler-Fayd'herbe explains. "This makes it easier for international families to settle and operate here."

Dubai's fiscal advantages, geopolitical neutrality, and proactive policy-making further enhance its appeal. "The UAE has navigated global developments intelligently," she says. "It's become a leader in the region's non-oil and services economy."

Real estate trends underscore this momentum. "The luxury property market is booming," she notes. "High-end developments are selling off-plan, reflecting strong demand from UHNWIs at a time when developed markets are struggling to retain them."

A bold future for family wealth
As Dubai continues to attract global wealth, the rise of family offices is likely to accelerate. With robust infrastructure, favorable regulation, and a forward-looking investment climate, the emirate is positioning itself not just as a destination - but as a platform for intergenerational wealth creation and preservation.

"The push and pull factors are clear," Hechler-Fayd'herbe concludes. "Dubai is not just benefiting from global trends - it's shaping them."