Family offices, the private wealth management firms for the ultra-rich, are at the center of fierce competition among global financial hubs. Cities and countries like Singapore, Hong Kong, Dubai, and Malaysia are vying to become the go-to destination for the world’s wealthiest families. Offering tax perks, strategic locations, and modern technology, these cities are reshaping how family offices operate.

Singapore: A Leading Family Office Hub Facing Challenges

Singapore is widely recognized as a top destination for family offices. Known for its stability, advanced financial systems, and reliable regulations, the city has long been a favorite of global billionaires. As of August 2024, Singapore is home to 1,650 single-family offices, with 250 new ones set up this year alone.

To maintain its lead, Singapore’s Monetary Authority is launching an online tax platform to simplify the application process for tax exemptions. The platform is expected to cut approval times to just three months, making Singapore even more attractive. But with rivals offering compelling alternatives, Singapore’s position is being tested.

Malaysia: An Emerging Contender

Malaysia is making bold moves to attract family offices. In September 2024, the government announced a special economic zone in Johor’s Forest City, providing zero taxes for qualified family offices for up to ten years. Personal income tax rates for skilled workers in the zone are capped at 15%, and corporate tax rates range between 0% and 5%. These incentives make Malaysia a cost-effective option compared to Singapore.

Additionally, Malaysia’s entry requirements are lower than Singapore’s. Family offices only need to manage RM30 million (around SGD9.09 million) to qualify for the zero-tax incentives, far less than Singapore’s SGD20 million requirement. Malaysia’s flexible and affordable setup could appeal to those looking for lower operational costs.

Hong Kong: Wealth City with a Strong Financial Legacy

Hong Kong remains a financial powerhouse with strong ties to Mainland China and a highly developed capital market. Hong Kong is home to 12,546 individuals worth US$30 million or more, known as ultra-high-net-worth individuals, according to Altrata’s World Ultra Wealth Report 2024, ranking second globally and only behind New York. Hong Kong is also home to 2,700 single-family offices, managing assets estimated to exceed HKD 31 trillion.

To strengthen its appeal, Hong Kong has introduced the “Family Office Nexus” initiative in partnership with Bloomberg. This program focuses on ecosystem development, knowledge sharing, and tech integration. Additionally, Hong Kong’s “Capital Investor Entrant Scheme” has attracted over 700 applications since March 2024, generating HKD21 billion in investments. However, challenges like geopolitical tensions and competition from nearby cities remain obstacles.

Dubai and Abu Dhabi: Middle Eastern Powerhouses

In the UAE, Dubai and Abu Dhabi are leveraging their strategic locations and wealth to attract family offices. Dubai alone oversees over USD1 trillion in assets managed by family offices. The number of registered foundations, a common vehicle for family offices, grew by 53% last year.

Abu Dhabi is also stepping up with initiatives like the Abu Dhabi Global Market (ADGM) and Hub71, a tech-forward ecosystem designed to attract global investors. Prominent families, such as Singapore’s Raj Kumar and Kishin RK, have already established offices in Abu Dhabi, signaling the region’s growing appeal. Favorable tax regimes, low crime rates, and prime global positioning further enhance the UAE’s attractiveness.

The Wealth Surge Behind the Rivalry

The rapid growth in global wealth is fueling this intense competition. According to Altrata’s World Ultra Wealth Report 2024, the global population of ultra-high-net-worth individuals (UHNWIs)—those with a net worth of $30 million or more—increased by 7.6% in 2023, reaching a total of 426,330 individuals. This group holds a combined wealth of approximately $49.2 trillion, accounting for 32% of the total wealth among high-net-worth individuals worldwide.

Family offices are essential for managing this wealth, offering services that range from investment management to philanthropy. For cities and countries, attracting family offices means more than economic benefits. It boosts their prestige and solidifies their status as financial hubs. Each destination is crafting unique strategies to position itself as the best choice for the ultra-rich.

The race for family office dominance is not merely a contest over tax perks or regulatory frameworks—it’s about shaping the trajectory of global wealth management. Each city competes by leveraging its unique strengths: Singapore’s reputation for stability and strong governance, Malaysia’s competitive cost structures, Hong Kong’s unrivaled connectivity to Mainland China and international markets, and Dubai’s geographically strategic position as a bridge between continents. However, family offices and HNWIs’ wealth management are not limited to a single location; instead, they can implement a multi-hub strategy that utilizes the unique advantages of various financial centers. This enables them to diversify risks, capitalize on opportunities, and stay agile in a rapidly changing economic environment.