As Dubai Faces Geopolitical Risk, Hong Kong Intensifies Pitch for Wealthy Families
Escalating tensions in the Middle East are prompting a reassessment of wealth management hubs, with Hong Kong seizing the moment to expand its appeal to family offices. Amid concerns that conflict could undermine Dubai’s reputation as a stable safe haven, Hong Kong’s government has proposed a significant expansion of tax incentives, sparking a surge in interest from wealthy individuals and families, according to legal and consulting experts.
“We’re seeing a lot more interest in Hong Kong. This interest, especially in the last two weeks, has surged dramatically,” said Gaven Cheong, a partner and fund formation lawyer at Charles Russell Speechlys based in Hong Kong. Cheong noted he is now in near-daily conversations with families, including some who previously relocated away from the region, considering setting up single-family offices in the city.
New Tax Incentives Aimed at Regaining Lost Wealth
The renewed push comes as Hong Kong looks to reverse a notable wealth exodus. Following the 2019 protests, an estimated 4,200 millionaires left Hong Kong in that year alone, according to investment migration consultancy Henley & Partners. In response, the city introduced initial tax concessions for family offices in 2023. Now, in late February 2024, the Hong Kong government proposed a fresh set of measures, with legislation expected by June.
Key proposals include extending tax exemptions to a broader range of assets held by single-family offices, family-owned investment vehicles, and funds. These assets would cover investments in gold, cryptocurrencies, private credit, and overseas real estate. Financial Secretary Paul Chan framed the move as critical to enhancing Hong Kong’s competitiveness as a premier wealth and asset management center.
A Direct Contest with Singapore’s Dominance
Hong Kong’s efforts are widely seen as a competitive response to Singapore’s overwhelming success in attracting family offices. Between 2020 and 2024, Singapore’s family office population grew from approximately 400 to over 2,000, according to the Monetary Authority of Singapore. Many mainland Chinese families, seeking political neutrality and a tax-friendly regime with independent courts, shifted their operations to Singapore, said Singapore-based lawyer Edmund Leow, senior partner at Dentons Rodyk.
“There was a mad rush to set up family offices in Singapore, and Hong Kong realized they needed to do something otherwise a lot of their families would shift,” Leow explained. He views Hong Kong’s latest proposals as “incremental changes” that largely mirror existing Singaporean policies. For instance, Singapore already offers a tax exemption on gold investments. Leow suggests the choice often hinges on personal and political alignment: “If this person is politically aligned with China, then maybe they might choose Hong Kong… But if they’re looking for a politically neutral country, then they might go for Singapore.”
Potential Differentiators and Practical Advantages
Despite the similarities, some experts see meaningful distinctions. Cheong highlighted Hong Kong’s proposed broader cryptocurrency tax exemption as a potential differentiator compared to Singapore’s more limited framework. Anthony Lau, Hong Kong leader of Deloitte Private, pointed to two significant procedural advantages for Hong Kong.
First, family offices in Hong Kong do not need to apply for a specific exemption to qualify for tax breaks, whereas in Singapore, approval is required and currently takes about three months—an improvement from a previous 12-month wait. Second, Hong Kong imposes no local investment requirement. Singapore mandates that family offices allocate either 10 million SGD (approximately $7.85 million) or 10% of their assets under management (whichever is lower) in designated local investments.
Geopolitical Diversification vs. Physical Relocation
The current Middle East instability is clearly a catalyst. “If you want to diversify your risk and want more exposure in Asia, then obviously they want to move part of their investments outside a potential conflict zone,” Lau said. However, he cautions against assuming a direct, large-scale migration of families from Dubai to Hong Kong. “Whether the family or family members would really move to Hong Kong, I think that’s a question mark,” he stated.
Data suggests Hong Kong’s efforts are already yielding results. Research by Deloitte, commissioned by the Hong Kong government, found the city was home to nearly 3,400 single-family offices at the end of 2023—a number that grew by 681 to an estimated 3,400 by the end of 2025.
Ultimately, the decision rests on a complex matrix of factors, including political affinity, existing business ties—”If your business is in China, you need to have good relationships with the Chinese government. That would be a reason for choosing Hong Kong,” Leow noted—and the specific composition of investment portfolios. While Hong Kong is sharpening its tools to compete, the ultimate choice between it, Singapore, or other jurisdictions remains a highly personal one for the ultra-wealthy.
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