02/03/2026 06:14 AST
The UAE has become a strategic destination for globally mobile high-net-worth individuals (HNWIs) as the region's private banking sector is moving into a fundamentally new stage of expansion due to a surge in entrepreneurial activity and a shifting demographic landscape, says an expert.
Aladdin Hangari, Head of Global Private Banking for the Middle East and North Africa (Mena) at HSBC, said private banking in the region is entering a structurally different phase of growth, one driven not only by asset appreciation, but by wealth mobility, entrepreneurship, and demographic transition.
Referring to Henley Private Wealth data, he said nearly 10,000 HNWIs relocated to the UAE in 2025, with momentum continuing to build. This influx brings substantial deployable capital along with sophisticated cross-border requirements spanning investment management, residency solutions, succession planning, and family governance.
"Alongside inbound wealth, the region continues to generate substantial domestic wealth through family-owned businesses, capital markets, and state-enabled entrepreneurship. This combination positions Mena not just as a booking centre for assets, but as a global wealth corridor linking Asia, Europe, Africa and the Americas," Hangari told BTR during an interview.
For private banks, he said growth will increasingly be defined by the ability to serve clients whose wealth, lives, and ambitions span multiple jurisdictions simultaneously.
HNW Clients Expectations
Hangari said client expectations have evolved beyond traditional portfolio management. Today's HNW and UHNW clients, particularly entrepreneurs and next-generation family members, expect deeply personalised advice, delivered seamlessly across borders and asset classes.
In response, he said private banking is shifting towards holistic advisory models that integrate investments, financing, wealth structuring, and family governance. Multigenerational wealth transfer is a central consideration: globally, trillions of dollars are expected to pass between generations over the coming decades, and families increasingly seek structured support to prepare heirs, align values, and preserve wealth across time.
"This requires a more collaborative approach, combining relationship managers, investment specialists, and wealth planners, alongside access to global markets, private assets, and bespoke lending solutions. Increasingly, advisory conversations are as much about purpose, legacy, and resilience as they are about returns."
HSBC is uniquely positioned to have this conversation across both personal and corporate personas of our clients, encompassing their personal and business ambitions, which particularly for entrepreneurs and family-owned businesses are often inextricably linked, he said.
Digital Tools, AI-driven Tech
Hangari said technology is now fundamental to how private banking delivers value, not merely an efficiency lever. Digital platforms are enabling real-time portfolio transparency, consolidated reporting across jurisdictions, and faster execution across public and private markets.
He said artificial intelligence and advanced analytics are being deployed to enhance risk assessment, scenario modelling, and portfolio construction, allowing clients to understand how macroeconomic volatility, interest-rate shifts, or geopolitical developments may impact their wealth. Importantly, these tools are designed to augment human advice, not replace it, enabling relationship managers to engage in more strategic, forward-looking conversations with clients.
"From a client-experience perspective, digital onboarding, secure communication, and personalised insights are increasingly expected, particularly by internationally mobile and next-generation clients accustomed to seamless digital experiences in other aspects of their lives. These are channels across which HSBC is investing in globally across our booking centres," he said.
Major Challenges
About the major issues being faced by private banks, Hangari said one of the most pressing challenges is talent. "Attracting and retaining bankers and support executives who are capable of operating at the intersection of global markets, complex regulation and deeply personal client relationships has never been more competitive. At the same time, regulatory expectations continue to rise, particularly around cross-border activity, transparency, and risk management," he said.
Another challenge is engagement, according to Hangari.
"Clients today are better informed, more demanding, and more values driven. Private banks must move beyond transactional interactions toward trusted, long-term partnerships, underpinned by insight, consistency, and relevance," he said.
Navigating these challenges requires continued investment in people, technology, and culture, ensuring that our teams are empowered, digitally enabled, and aligned with evolving client priorities, he aaded.
Popular Investment Themes
In an environment marked by geopolitical uncertainty, inflation dynamics, and shifting monetary policy, diversification and resilience are paramount. Many HNW and UHNW clients are increasingly allocating across multi-asset portfolios, blending public markets with private equity, private credit, and real assets, Hangari says.
"Entrepreneurial clients, in particular, often seek exposure aligned with long-term structural themes, such as technology, energy transition, healthcare, and infrastructure, while maintaining sufficient liquidity and downside protection. At the same time, wealth preservation remains central, especially for families navigating intergenerational transitions.
"Ultimately, there's never going to be a thematic that encompasses everyone - portfolio positioning is highly individual. The role of private banking is to help clients balance growth, protection, and purpose to ensure that wealth is not only grown, but sustainably stewarded across borders and generations," Hangari concluded.
Khaleej Times
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