Wealthy individuals are looking to shift assets from the Gulf region to Switzerland as a result of the escalating conflict in the Middle East following the US-Israeli strikes on Iran, bankers and financial advisers say.
More than a dozen bankers and financial advisers, collectively representing assets worth more than $1 trillion, were broadly optimistic in interviews with Reuters that Switzerland would attract more money from the Middle East, particularly after Iranian attacks on Gulf states.
Although Switzerland, long considered by investors as a safe haven, has faced growing competition from financial hubs in the Middle East and Asia, cash positions booked in the country by private individuals and non-banks from the UAE have risen around 40 per cent over the last three years.
This gained momentum after earlier attacks by Israel and the US on Iran in June last year, said Patrik Spiller, head of wealth management at consultancy Deloitte Switzerland.
“Due to recent events, we expect that assets from the Middle East will increasingly be booked in Switzerland. We’re hearing from banks, family offices, and other high-net-worth individuals that discussions are currently underway,” Spiller said. The Swiss Bankers Association said it could not comment specifically on asset flows from the Middle East since the recent strikes on Iran, but noted Switzerland had long set out its store as an attractive place for wealthy investors.
“It’s now to our advantage that we can score points with Swissness, namely secure conditions, political stability, and the rule of law. I believe this is particularly valued in times like these,” said SBA chief economist Martin Hess. After the US-Israeli strikes on Iran, the Swiss franc hit its highest level against the euro in a decade.
Although it would likely take weeks or months for inflows to register, Switzerland could eventually see “several dozen billion” dollars coming in from the region, Spiller said.
“But that will depend a great deal on how the war develops, and how long it lasts,” he added, noting cash usually came first followed later by assets such as stocks or bonds.
UBS, Switzerland’s biggest wealth and asset manager, declined to comment, as did Julius Baer, which has the third-largest total of assets under management (AuM).
Swiss private bank Pictet, which ranks second largest by AuM, said in a statement it is seeing inquiries from customers, but the increase could not be described as significant.
“We reported a record high in AuM at the end of the year, despite the weak US dollar, and the positive trend has continued since the beginning of the year. Swissness works,” Pictet added.
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