Wealthy people are trying to move their assets from the Gulf region to Switzerland due to the intensifying turmoil in the Middle East after the U.S.-Israeli strikes on Iran.
More than a dozen bankers and financial advisers holding assets totaling more than $1 trillion expressed general optimism that Switzerland would draw more investment from the Middle East, especially in light of Iranian threats on Gulf governments.
Cash positions booked in Switzerland by private individuals and non-banks from the United Arab Emirates have increased by about 40% over the past three years, despite the fact that Switzerland, long regarded by investors as a safe haven, has faced growing competition from financial hubs in the Middle East and Asia.
According to Patrik Spiller, head of wealth management at consultancy Deloitte Switzerland, this gained momentum following previous attacks on Iran by the United States and Israel in June of last year.
We anticipate that assets from the Middle East will be booked in Switzerland more frequently as a result of recent events. Banks, family offices, and other wealthy people are telling us that talks are going on,” Spiller stated.
The Swiss Bankers Association stated that Switzerland had long positioned itself as a desirable location for affluent investors, but it was unable to comment particularly on asset flows from the Middle East due to the recent strikes on Iran.
We may now benefit from Swissness in terms of safe conditions, political stability, and the rule of law.
“I think this is especially important in these times,” stated Martin Hess, head economist at the SBA.
The Swiss franc reached its best level versus the euro in ten years following the U.S.-Israeli assault on Iran.
“SWISSNESS WORKS.”
Spiller stated that Switzerland would eventually see “several dozen billion” dollars streaming in from the region, even though it would probably take weeks or months for inflows to register. But it will largely rely on how the battle plays out and how long it lasts,” he continued, pointing out that cash typically comes first, followed by assets like stocks or bonds.
Both Julius Baer, which has the third-largest total assets under management, and UBS, the largest wealth and asset manager in Switzerland, declined to comment.
The second-largest Swiss private bank by AuM, Pictet, said in a statement that while it is receiving customer inquiries, the increase is not particularly noteworthy.
Despite the weak US dollar, we reported a record high in AuM at the end of the year, and the good trend has persisted since the start of the year. “Swissness is effective,” Pictet continued.
The conflict with Iran, according to Till Budelmann, chief investment officer of Bergos, a private bank in Zurich with roughly 8 billion Swiss francs ($10 billion) in AuM, has thrown Switzerland back into the spotlight, especially among European investors.
According to Budelmann, after hostilities started, a European investor who had been considering opening an account asked for a prompt appointment to start the process.
Budelmann told reporters that he believed the war had “given a boost to Switzerland as a safe haven” even though it was too early to estimate potential inflows.
