The United Arab Emirates used to be seen as a place where an expat might spend two or three years. You would temporarily relocate there, earn some money and then head back home, says Mark Maplesden, Novia Global’s principal representative officer in Dubai.
Today it is more likely to be seen as a place where an expat might spend a decade or more. You could even retire there. Increasingly, heading back home isn’t a compelling option – because the UAE is home.
This longer-term thinking clearly has implications for advisers and other financial services providers. It’s essential that products and services keep pace with the UAE’s ongoing evolution and how the region is widely perceived as a result.
In my opinion, international investment platforms can lead the way in this respect. Those at the cutting edge may be especially well suited to fulfilling the requirements of advisers and their clients as the UAE’s appeal continues to grow.
To understand why, we first need to explore how this part of the world has become an even more attractive destination for overseas wealth. We then need to consider how state-of-the-art platforms might best respond.
A vital shift
I originally moved to Dubai 11 years ago. It was already an established hub for travel, tourism and trade at the time, and the Dubai International Financial Centre (DIFC) was expanding at pace.
A commitment to innovation was evident everywhere. So was an ambitious, “can do” attitude. The appetite for improvement was insatiable – as it still is today.
Typically, expats would arrive from countries such as the UK, stay for a relatively short spell and then move on. This meant financial services provision was essentially geared towards helping achieve short-term objectives.
In 2019 the Golden Visa scheme was introduced. It paved the way for investors, entrepreneurs and other target demographics to take up long-term residence while enjoying “exclusive benefits” .
The influx of talent has since reached unprecedented heights, with Dubai recently named the number-one destination for migrating high-net-worth individuals (HNWIs) . More expats are genuinely building for the future – and many of them see their future in the UAE.
A need for novel solutions
This shift has reshaped demand for financial products and services. There’s now a real need for offerings that cater for expats who plan to remain abroad for a significant period or even permanently.
ISAs serve as a classic illustration. Many UK expats are surprised to learn new ISAs can’t “travel” with them due to HM Revenue & Customs regulations not allowing new tax year subscriptions for non-UK residents. This means you can’t subscribe to a new ISA or top up your existing ISAs while living abroad – often leaving these investments unmanaged or overseen by a financial services provider unrelated to your overall financial strategy.
There have been few efforts to address this problem over the years. But one potential answer is for international platforms to offer ISAs of their own – which is what we’ve done at Novia Global.
This move represents a straightforward means of transferring existing ISAs and incorporating them within broader accounts. Similarly, international platforms are well positioned to deliver innovative solutions around the likes of SIPPs and General Investment Accounts.
A fundamental aim in all these instances is to facilitate the transparent alignment of investments and so contribute to long-term simplicity and stability. In our experience, this is what more and more expats and their advisers are now looking for.
Driving positive change
Ultimately, the lesson for our industry is that the UAE is constantly evolving. This means our products and services have to evolve as well.
With that goal in mind, it’s worth remembering that the DIFC has quickly earned a reputation as a magnet for financial technology. It’s already home to the biggest fintech ecosystem in the Middle East and South Asia.
Organised by the Dubai Chamber of Digital Economy, the recent Expand North Star event featured more than 1,800 start-ups from over a hundred countries. It also played host to investors responsible for over $1 trillion in assets .
This further underlines the trailblazing role that international platforms can play in a unique, conspicuously thriving market. It makes clear that the UAE is a place that not only embraces but drives positive, innovation-enabled change.
If what I’ve witnessed over the past 11 years is any guide, financial services providers that share this philosophy are likely to prosper. Crucially, so are their clients.
By Mark Maplesden, Novia Global’s principal representative officer in Dubai