United Arab Emirates (UAE): Looking For Some Good Options In Private Banking?

Banking Regulations
Banking Regulations

The United Arab Emirates is becoming an increasingly important center for high-net-worth persons and ultra-high-net-worth individuals from all over the world. According to a survey by New World Wealth, the number of high-net-worth individuals (HNWIs) migrating to the United Arab Emirates climbed by 35,000 between the years 2000 and 2020, and a further growth of 24.6 percent is predicted over the next five years. At the height of the Covid pandemic, the United Arab Emirates defied the trend by experiencing a sharp economic rebound over the second half of 2020 and a growth in private wealth assets from USD 825 billion in June to north of USD 870 billion by the end of the year. This occurred while the rest of the world was in the grip of uncertainty caused by the spread of the Covid virus. It is projected that the United Arab Emirates is home to 83,000 high-net-worth individuals (HNWIs), each of whom has a net worth of at least one million dollars (USD). As a direct consequence of this, there is an increased demand for the assistance of private banking and wealth management companies in the administration of those assets. In the United Arab Emirates, and especially in Dubai, where it is still one of the most popular destinations for high net worth individuals from all over the world, you may take use of quite a few different private banking services.

Best Private Banks

Private banking is an option that is made available by the most reputable financial institutions in the world to their most affluent customers. This minimum value of investable assets can be as little as $200,000, though the exact number will vary from bank to bank. In order to be qualified for private banking, an individual needs to have a certain value of investable assets.

Many of the most reputable financial institutions in the area, including Emirates National Bank and Mashreq Bank, provide its customers with access to private banking memberships, including those at the Dubai branches of HSBC, Credit Suisse, Citibank, and Barclays.

Advantages of Private Banking

Relationship Management Team

The most major advantage of private banking is the individualized attention given to your financial needs and objectives. You may rest certain that you are working with a staff that has your best interests at heart and maintains strict confidentiality. Here are some of the benefits that private banking provides.

Relationship Management Team

When you have a private banking relationship, a specialist wealth manager/banking advisor will assist you in managing your assets. You will also get access to a team of financial experts, including mortgage, insurance, and tax advisory specialists. Your team monitors the global financial market, recognizing and adjusting to developments so that you are always able to make the most prudent financial decisions.

Multi-Jurisdiction Currency, Investment & Asset Management

As a global citizen with assets spread across multiple jurisdictions and currencies, private banking allows you to keep track of everything from one place. As a result, you’ll be given advice on the finest investment possibilities that will help you develop your assets, including changes that aren’t immediately visible. Additionally, you’ll get access to a variety of premium banking services around the world, including the option to withdraw ’emergency cash’ from any ATM as needed.

Multi-Jurisdiction Currency, Investment & Asset Management

Exclusive Privileges

There are perks for private banking customers, such as sign-up bonuses and other incentives. Preferential interest rates, foreign exchange discounts, and fee waivers on several financial services are also included in the package. Members-only activities are also held by a number of organizations.

Better Business

Commercial loans can be arranged more simply for business owners who have their company accounts in the same bank as their personal banking ties, and there may be discounts and other privileges to take advantage of.

Stay Connected to your Wealth

Stay Connected to your Wealth

Due to the pandemic, where people try to avoid in-person encounters as much as possible, there has been an increase in the desire to totally automate wealth and asset management. The most well-known and reputable global banks use a strong internet foundation to ensure that you can always keep track of your assets conveniently, wherever you might be in the world.

Those who travel frequently for work or are wealthy individuals with assets in the United Arab Emirates can greatly profit from this new program. They don’t have to fly in for a meeting to keep track of everything, as they would have had to before.

Cons of Private Banking

Despite the fact that private banks offer a specialized financial and asset management service, there are certain limitations to this option. Among the drawbacks of private banking are the following:

High Fees

Management fees and supplementary costs for some premium services are common in private banking relationships. The price of private banking might vary greatly depending on the size and nature of your assets and the services you expect to receive from them.

Employee Changes

Employee Changes

One of the most important factors in the banking and financial industries is turnover. You’ll have to start again with a new advisor if your private banker decides to leave his or her existing firm. Alternatively, you might choose to stick with your current banker, which would necessitate a bank switch, which would add to the overall cost of the move.

Banking Regulations

In order to avoid paying taxes or to keep one’s assets out of the reach of the IRS, private banking can be a dangerous tool. This has resulted in harsher rules on private banking institutions in several nations throughout the world, particularly those in Europe, which are at odds with private banking’s discretionary nature. In some instances, this might be a benefit to customers as well.

In the end, if you have a significant amount of money that you want to be sure is safe, private banking is a worthwhile alternative. Contact our Private Client Advisory team today to learn more about private banking in Dubai and our preferred banking partners.

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