Investec, the niche private banking and wealth management group, has set up base in Dubai, targeting thousands of wealthy South Africans living the United Arab Emirates (UAE).
The company on Wednesday opened an office at the Dubai International Financial Centre (DIFC), which connects high-net worth clients, family offices and financial institutions in the Gulf Co-operation Council.
Darryn Solomon, senior executive officer of the Investec Dubai office, said many South Africans were living in Dubai.
“We are following our clients and their assets. When we did our initial figures a year ago, we focused on the low-hanging fruits, which are South Africans living in Dubai. There are lot of South Africans here. We are talking about between 150,000 to 200,000 South Africans we identified. We also have a lot of UK expats living in Dubai,” Solomon said.
“We are seeing not only our clients, but [also] South African companies coming into the UAE and using that as a base. There are a couple of reasons for that, one is tax benefits and the UAE government has set up free zones.”
Investec operates in two anchor geographies, SA and the UK, as well as the US, Ireland, the Channel Islands, Mauritius, India and Continental Europe.
The financial services group said the DIFC was home to more than 6,000 companies, including about 230 banks, and dozens of the world’s leading wealth and asset managers. The company said it had a limited licence in Dubai, and would not be raising deposits or granting credit in the country.
“It’s more of an opportunity for expat clients who are based there to access the international network of Investec through that office. For expat South Africans, the office offers an opportunity to continue engaging our private banking services. The same applies to UK expats,” Investec Bank CEO Cumesh Moodliar said.
“We see a sustained emergence of high-net worth individuals in Dubai and the Gulf as the region offers connectivity, quality services and growth opportunities for domestic and international companies. This reflects the increasing importance of the region for the global economy and the ambitious growth agenda of these markets.”
The fact that UAE does not levy income tax on individuals, combined with robust economic growth, continues to be very endearing to an increasing number of investors.
Regulations such as the DIFC Family Arrangements Regulations, enacted in 2023, were tailored to solidify Dubai’s appeal for family offices.
Salmaan Jaffery, chief business development officer at the DIFC Authority, said: “We are delighted to welcome Investec to DIFC and Dubai. DIFC’s world-class business ecosystem, legal and regulatory framework and world-class infrastructure continues to attract financial institutions looking to access deep pools of wealth from family offices, sovereign funds and ultra high-net worth individuals. By establishing in DIFC, Investec can use Dubai as a gateway to more than $3-trillion of private wealth within an hour’s flight.”
Investec has also identified Switzerland as a key opportunity for its wealthy clients in SA and other jurisdictions to grow their wealth, as part of its international strategy. Switzerland has long been one of the most glamorous places for affluent families and offers the privacy they yearn for.
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