Dubai Attracts Billionaire Family Offices Amid Decline in Swiss Appeal

UAE Attracts Billionaire Families Amid Swiss Regulatory and Political Pressures

Dubai is swiftly emerging as a preferred destination for ultra-high-net-worth (UHNW) family offices looking to relocate from Switzerland, long regarded as the world’s most prestigious wealth management hub. This ongoing shift, reported by the Financial Times, is driven by a combination of stricter Swiss regulations, looming tax policy uncertainty, and political instability, prompting affluent families to seek greater privacy and operational ease in the United Arab Emirates (UAE). According to Ronald Graham, managing partner at Taylor Wessing’s Dubai office, at least two major family offices with multi-billion-dollar asset portfolios have initiated relocation processes, with one having already completed its move. The Dubai appeal lies largely in its less invasive regulatory environment, where wealth managers and private investors face fewer disclosure obligations compared to Swiss standards.

Graham emphasized that Dubai’s regulatory framework offers a quieter and more confidential environment, which is highly attractive to the world’s wealthiest individuals. Unlike in Switzerland—where reforms now compel some family offices to register as portfolio managers based on client count or asset thresholds—Dubai’s interpretation of “family office” remains more lenient. This results in significantly fewer compliance burdens and allows UHNW families to maintain a lower profile in managing their global wealth.

Highlights:

• Billionaire family offices are shifting from Switzerland to Dubai due to tightening Swiss regulations.

• Dubai offers greater privacy, fewer disclosures, and a more relaxed regulatory environment.

• Ronald Graham confirms multi-billion-dollar family offices have already begun or completed relocation.

Swiss Regulatory and Taxation Changes Spur Uncertainty Among Wealth Managers

Industry analysts argue that no single factor is driving the migration out of Switzerland; rather, it is a cumulative burden of shifting tax norms, regulatory tightening, and political ambiguity. For example, under new Swiss regulatory rules, family offices managing wealth for more than 20 clients or exceeding certain income thresholds may be classified as professional portfolio managers, thereby increasing their exposure to financial oversight and compliance mandates. This change not only threatens the privacy long cherished by Swiss family offices but also imposes new licensing requirements that many institutions are ill-prepared to meet.

Additionally, Switzerland’s pending referendum on a 50 percent inheritance and gift tax has injected a layer of financial risk and long-term unpredictability, even though the likelihood of its passage remains low. Yet, the mere presence of such proposals is enough to shake investor confidence. Julius Baer, one of Switzerland’s premier banks, has noted that even single-family offices could fall under these broader rules, a shift that disrupts the very foundations of the country’s discreet wealth architecture. A Swiss family office beneficiary quoted by the Financial Times admitted that the political and regulatory instability of the past two years has been a primary factor in prompting families to reevaluate Switzerland as a financial base.

Highlights:

• New Swiss rules may force family offices to register as portfolio managers, increasing compliance costs.

• Pending Swiss referendum on 50% inheritance and gift tax heightens policy uncertainty.

• Julius Baer and other institutions caution that even single-family offices could fall under expanded regulation.

Dubai’s Rapid Ascension as a Global Family Office Hub

Dubai’s transformation into a global magnet for wealth and family offices has been notably accelerated in recent years. In 2023 alone, the Dubai International Financial Centre (DIFC) reported the addition of over 200 new family offices, bringing the total to around 800 registered entities. This surge reflects the emirate’s focused strategy to court the global elite through favorable regulatory structures, residency programs, and targeted subsidies. KPMG’s Reto Gareus confirmed that multiple European multi-family offices are relocating to Dubai alongside their clients, driven by both lifestyle preferences and tax benefits. The UAE’s entrepreneurial economic framework, investor-friendly policies, and absence of income and inheritance taxes further enhance its appeal.

Deloitte’s Thomas Hug also emphasized that Dubai and other Middle Eastern jurisdictions are offering financial incentives and regulatory clarity that Switzerland can no longer match. As traditional Western tax havens like the UK phase out policies such as the non-domicile tax regime, and sanctions restrict wealth mobility—especially for Russian clients—Dubai is quickly becoming a safe harbor for both asset preservation and growth.

Highlights:

• DIFC added 200 new family offices in 2023, bringing the total to 800.

• KPMG and Deloitte cite Dubai’s subsidies, tax advantages, and relaxed compliance as key draws.

• Shifting wealth strategies due to global tax reform and sanctions bolster Dubai’s position.

Switzerland’s Prestige Persists but Faces Mounting Pressure

Despite the momentum towards Dubai, Switzerland retains its global reputation for financial expertise, with Deloitte’s 2024 wealth management rankings placing it at the top. However, the report warns that the collapse of Credit Suisse, uncertain tax reforms, and increased regulatory oversight are beginning to erode investor confidence. These developments, coupled with the relative lack of government-driven incentives, signal a potential weakening in Switzerland’s long-standing dominance in the global wealth landscape.

Interestingly, while international and European UHNW families are moving away from Switzerland, some wealthy American investors are still considering Swiss residency, especially amid rising domestic uncertainty under President Trump’s second term. Areas like Andermatt, where property regulations for foreign nationals have eased, are becoming popular among elite American investors seeking a secure base in Europe. Nonetheless, as the parameters of global wealth management evolve, Zurich’s loss could signal a deeper structural shift in how and where the world’s wealthiest choose to base their financial operations.

Highlights:

• Switzerland still ranks top globally in wealth management but faces risks to competitiveness.

• Credit Suisse’s downfall and regulatory changes dent Swiss confidence.

• Wealthy Americans still view Switzerland as a potential haven amid U.S. instability.