New paradise for China's super-rich

VTV.vn - Private banks have seen a new wave of interest in the Gulf region from China's super-rich as Singapore tightens its immigration screening process.

According to the Financial Times, more and more wealthy Chinese are looking to open family offices and apply for residency in Gulf countries. This interest is growing in the context of increasingly strict immigration regulations in Singapore. The Lion City was once considered a favorite destination for Asia's elite.

Private bankers and financial advisers to the super-rich say there has been a significant increase in Chinese clients expressing interest in moving to Dubai and Abu Dhabi over the past year, with setting up a family office making it easier to apply for residency or citizenship.

“What attracts them to the Gulf is the opportunity to settle down, to have a stable life and enjoy a safe environment,” said Mike Tan, global head of wealth planning and family advisory at Standard Chartered in Singapore. He added that inquiries about Dubai from the bank’s East Asian clients have increased sharply in the past year, although Standard Chartered did not disclose specific figures.

According to the Financial Times, more and more wealthy Chinese are looking to open family offices and apply for settlement in Gulf countries.

The United Arab Emirates (UAE) “golden visa” program, which grants 10-year residency to investors, some family members and skilled workers, is “very attractive, stable and has a favorable tax policy,” according to Mr. Tan.

UAE figures show that the country issued nearly 80,000 golden visas in 2022, a sharp increase from 47,000 the previous year. Also according to statistics, the number of family offices operating in Dubai's offshore financial center reached 1,000 units at the end of the first half of this year, up from 800 at the end of last year and 600 at the end of 2023.

While there is no detailed data by nationality, advisers say much of the increase is coming from Chinese customers.

“The influx of wealthy people into the Gulf is growing so rapidly that there is a shortage of Chinese-speaking financial talent,” said Prashant Tandon, UAE managing director of asset management firm Lighthouse Canton.

He said the trend of shifting to the UAE is strongest among individuals with assets of 50 to 200 million USD – “the middle segment of the wealthy”.

“Many families have sold their Singapore properties to reinvest in the UAE,” said Yann Mrazek, CEO of M/HQ, which helps set up funds and family offices in Dubai and Abu Dhabi. He said the COVID-19 pandemic and Singapore’s increasingly strict immigration policies were the initial triggers for the wealthy to look to the Gulf.

“The Singapore government has a very selective immigration policy. They want to ensure that only the right people are accepted. It is easy to set up a family office and get a work permit, but it is much harder to get residency or citizenship,” said a consultant in Singapore.

While Dubai’s family office market is growing rapidly, it remains small compared to Singapore. Thanks to incentives, the number of family offices in Singapore increased 43% last year to more than 2,000, making it a popular choice for wealthy foreigners looking to settle permanently.

“At one point, having a family office in Singapore became a status symbol. If your friends had one, you should have one too,” said Kevin Teng, CEO of Wrise Private Singapore. “But that also led to many offices that existed in name only, without any real functioning.”

Singapore increasingly tightens immigration review process

Singapore has granted an average of 33,000 permanent residence permits and 21,300 citizenships a year over the past five years, according to the Immigration and Checkpoints Authority, which does not disclose the number of applications submitted. Immigration consultants say approval rates can be as low as 8.25%.

Following the biggest money laundering case in Singapore’s history, authorities have stepped up scrutiny of funding and background checks on applicants. At the same time, more Chinese crypto entrepreneurs are turning to the Middle East. There are now 39 fully licensed crypto companies under Dubai’s Virtual Assets Authority (VARA).

“In the cryptocurrency and digital asset space, Chinese customers are particularly interested in the openness of local regulators,” Mr. Teng said. “Risk tolerance varies across markets, and Singapore is currently more cautious, especially compared to Dubai.”

The Monetary Authority of Singapore has now licensed 36 digital payments companies, but has also tightened controls on unlicensed cryptocurrency exchanges since this summer.

“Customers are increasingly turning to the Middle East,” Mr. Teng added. “It is definitely a growing business.”

Source: https://vtv.vn/thien-duong-moi-cua-gioi-sieu-giau-trung-quoc-100251111084120132.htm