Updated - Sheikh Ali Al Maktoum establishes family office in Hong Kong’s flourishing investment landscape

Sheikh Ali Al Maktoum, a member of Dubai’s ruling family, has chosen Hong Kong as the site for his new family office. This initiative marks a significant vote of confidence in Hong Kong’s investment climate, particularly in the wake of concerted efforts by the city’s government to attract foreign capital.

Sheikh Ali, the nephew of Dubai’s sovereign, Sheikh Mohammed bin Rashid Al Maktoum, has been drawn to the parallels between Dubai and Hong Kong, remarking upon the city’s advanced state and the myriad investment possibilities it presents. During a revealing interview with Bloomberg, the Sheikh highlighted his ambition to capitalize on the opportunities within the vibrant markets of mainland China and Hong Kong.

The newly established family office, helmed by CEO Eleanor Mak, is set to manage assets to the tune of $500 million. The office will primarily pursue investment prospects across a diverse range of sectors in Asia, including burgeoning areas such as artificial intelligence, construction, electric vehicle technology, tourism, and financial technology. This marks the family office’s first international expansion, with proactive engagement already underway to identify potential investment targets in the region.

Hong Kong’s economic secretary, Paul Chan, has been actively courting Middle Eastern enterprises to consider Hong Kong for potential listings in 2023. This diplomatic charm offensive is part of a broader campaign to rejuvenate Hong Kong’s economy, which has faced challenges following the Covid-19 pandemic and increasing tensions between the United States and China.

In comparison, Singapore has notably incentivized at least 1,400 single family offices with tax breaks, as reported by the Monetary Authority of Singapore. Hong Kong, not to be outdone, has set ambitious targets of its own. A Deloitte market study estimates over 2,700 single family offices currently reside in the city, and Chief Executive John Lee Ka-chiu has articulated a goal to attract an additional 200 by the end of 2025, leveraging both tax and residency perks to sweeten the deal.

Adding to the appeal of establishing family offices in Hong Kong, the city recently hosted a delegation in Riyadh and Abu Dhabi. This initiative, coupled with the enlistment of local property magnates, underscores Hong Kong’s commitment to becoming a haven for family offices.

Among the distinguished attendees at the upcoming Wealth for Good summit in Hong Kong is Sheikh Ali himself. The event will also see the participation of notable figures such as Jeffrey Katzenberg of WndrCo and Oliver Weisberg of Blue Pool Capital. Sheikh Ali’s presence at the summit is indicative of the prospective collaborations and strengthening of economic ties that his family office aims to foster.