Why Abu Dhabi is becoming wildly popular with billionaires
foxbusiness.comGlobal Guardian CEO Col. Dale Buckner comments on threats facing the U.S. in China and the Middle East.
Billionaires are increasingly flocking to a growing financial hub in the Middle East to protect their financial assets as other tax havens fall out of favor.
The United Arab Emirates (UAE) and its capital city, Abu Dhabi, have become a financial refuge for high-net-worth individuals in recent years as it looks to diversify its economy from being reliant on oil revenue.
This comes as traditional tax havens like the Cayman Islands and the British Virgin Islands face heightened scrutiny from financial regulators in the U.S. and Europe, while Switzerland steps up its oversight of accounts in the country.
An analysis by Bloomberg News found that hedge fund billionaire Ray Dalio, crypto magnate CZ Zhao and the Adani family of India are among the dozens of wealthy individuals who have established special purpose vehicles (SPV) in the Abu Dhabi International Financial Center this year alone.
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The UAE, in part through its Abu Dhabi Global Market (ADGM), is transforming into an international financial hub with billionaires flocking to park their cash in the ADGM. (Photo by Sina Schuldt/picture alliance via Getty Images / Getty Images)
The analysis found that over 5,000 SPVs now exist in the Abu Dhabi Global Market (ADGM) – a dramatic increase from 46 in 2016 – according to data from wealth advisory firm M/HQ.
A spokesperson for the ADGM told Bloomberg that SPVs allow for both equity and property assets. They also do nOt have minimum capital requirements or restrictions on the nationality of shareholders, which makes it easier for investors to park their money
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