Aliko Dangote, Africa’s richest man, is set to open a family office in Dubai, reflecting a trend among wealthy individuals seeking to manage their wealth in the city. With a net worth of $13.2 billion, Dangote ranks as the 168th richest person in the world, according to the Bloomberg Billionaires Index.
Dubai has become increasingly attractive for high-net-worth individuals due to its favourable business environment and tax policies. This move underscores the city’s growing reputation as a global financial hub for wealth management and investment diversification.
Dangote has built his fortune through a diverse portfolio of commodities, including cement, sugar, and flour. Recently, he expanded into energy with the launch of a massive $20 billion oil refinery in Lagos, which is the largest in Africa. However, the challenging economic climate in Nigeria has prompted him to look for more stable environments for his investments.
The relocation of his wealth management operations to Dubai is part of a broader trend among Africa’s billionaires. For instance, Egyptian billionaire Nassef Sawiris has also shifted his family office to Abu Dhabi, further highlighting the appeal of the Gulf region for major investors. Sawiris, with a net worth of $7.6 billion, has re-established his NNS Group in the Abu Dhabi Global Market, the emirate’s financial centre.
Dangote’s decision comes at a time when Nigeria’s economic landscape is increasingly uncertain. His refinery project has encountered various setbacks, including regulatory hurdles and delays. As many wealthy Nigerians seek to protect their assets and find better investment opportunities, Dubai’s low-tax jurisdiction and business-friendly policies have made it an attractive choice.
The influx of billionaires into Dubai is partly due to the city’s strategic location, which serves as a gateway between East and West. This geographic advantage, combined with regulatory flexibility, makes Dubai a prime destination for family offices and financial operations.
The establishment of Dangote’s family office is expected to further solidify Dubai’s status as a leading global financial hub. With many ultra-high-net-worth individuals (UHNWIs) choosing to manage their wealth in the emirate, Dubai is poised to enhance its appeal for international investments.
This shift in wealth management is not just about tax advantages; it also represents a strategic move to navigate the complexities of the global economy. As more billionaires look to diversify their investments and protect their assets, cities like Dubai are becoming key players in the financial landscape.
Aliko Dangote’s plan to open a family office in Dubai highlights the increasing trend of wealthy individuals moving their financial operations to more stable and favourable environments. As the economic situation in Nigeria remains challenging, such moves are likely to grow among Africa’s wealthiest figures, further emphasizing the importance of Dubai in the global financial system.
