Dubai royal nephew to open US$500 million family office in boost to Hong Kong hub
- The new outfit will add to some 2,700 single-family offices already operating in the city based on a government survey
- It will manage US$500 million with focus on investment in artificial intelligence, electric vehicles, tourism and fintech, among others
“I got to see a lot of similarities with Dubai,” Sheikh Ali, 28, said in an interview, recalling his first trip to the city in December, when he firmed up plans for his family office. “Hong Kong is very advanced in so many aspects and has so much to offer in terms of investment opportunities and business expansion.”
The investment firm, which will manage up to US$500 million,, is looking for opportunities in Asia in sectors including artificial intelligence, construction, electric vehicles, tourism and fintech, said Eleanor Mak, the firm’s chief executive officer. Hong Kong is its first foreign outpost, and the family office has started engaging in talks to potential target companies.
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The Asian financial hub has been seeking to rebound after an economic slump and exodus of international firms following the Covid-19 pandemic and growing US-China tension. It has stepped up efforts to attract the super-rich, introducing tax and residency incentives, just as the number of family offices has expanded in Singapore.
The Southeast Asian city state awarded tax incentives to at least 1,400 single family offices by the end of 2023, data from the Monetary Authority of Singapore showed.
In Hong Kong, a market study conducted by Deloitte estimated there were more than 2,700 single family offices. Chief Executive John Lee Ka-chiu in 2022 set a target to persuade more than 200 family offices with HK$240 million (US$31 million) in assets to establish or expand their operations by the end of 2025.
As part of the campaign, he led a week-long delegation to Riyadh and Abu Dhabi last year, and in November the city enlisted property tycoons to help lure more of the firms.