Middle East family offices still high on officials’ agenda
Officials are planning another visit to the Middle East in a bid to attract family offices to Hong Kong, the government has said, stressing that such wealth management firms do not require approval locally amid controversy over a Dubai prince’s commitment to investing in the city.
The Financial Services and the Treasury Bureau also said in a social media post yesterday that recent “talk of the town” showed a general lack of understanding about family offices, but steered clear of mentioning Sheikh Ali Rashed Ali Saeed Al Maktoum.
The sheikh’s new US$500 million family office drew public attention after it called off an inauguration ceremony at the eleventh hour last month. The Post also reported that Maktoum had an alter ego as a singersongwriter known as Alira who was popular in the Philippines.
In a post presented in a question-and-answer format, the bureau said Hong Kong welcomed family offices of all asset sizes and would not intervene in their investment decisions.
“The establishment of a family office in Hong Kong does not require special government approval, and the government does not invest in or provide financial assistance to individual family offices established in Hong Kong,” it said. “It is entirely up to the family office to decide which investment projects an individual family office will undertake in Hong Kong.
“The government will not be involved in its investment decisions. As long as they are compliant, Hong Kong will welcome them.”
The bureau was also planning another visit to the Middle East region to continue exploring relevant business development opportunities, it said.
Chief Executive John Lee Ka-chiu paid a weeklong visit to the United Arab Emirates and Saudi Arabia in February last year as the government sought alternative sources of investment amid heightened geopolitical tensions between China and the West.
Maktoum also began his shift from a performer to a sustainability focused investor last year. No updates have been posted on Alira’s TikTok page since last June, while the sheikh began attending investment forums in Dubai in the third quarter and visited Hong Kong in December.
His second visit to the city last month included speaking at a session of the Wealth for Good in Hong Kong summit.
However, his decision to postpone the launch of his high-profile family office in the city at the last minute sparked questions among some about his commitment to the investment.
Government sources have said that only “basic” checks were performed before the sheikh’s engagement, as they feared a stringent review might offend the VIP.
Another source said the latest blog post was meant to put an end to the controversy and it was hoped members of the public would have a better idea on family business offices.