The world’s richest people and their wealth managers continue to flock to the region, lured by low taxes, business-friendly regimes and year-round sunshine.

Rothschild is set to take over the United Arab Emirates subsidiary of the Liechtensteinische Landesbank (LLB), bolstering its presence in one of the world’s hottest markets for wealth management.  

The so-called referral agreement with LLB will add assets worth about one billion Swiss francs to Rothschild’s Dubai-based franchise. LLB will focus on its locations in Liechtenstein, Switzerland, Austria and Germany, while recommending Rothschild to clients in the United Arab Emirates.

“In recent years, we have experienced continuous strong growth in our global Wealth Management and Middle East businesses,” Rothschild executive chairman Alexandre de Rothschild said in a separate statement. The latest deal “represents our high conviction in the UAE’s potential, given the increasing concentration of both regional and global wealth here”.

The Paris-based bank opened a wealth management office last year in Dubai, where it will have about 25 employees after the agreement with LLB. The move will help the firm step up its regional offerings across public and private markets, as well as corporate advisory.

Other global firms have also bolstered their presence in the region in the past few years to capitalise on the burgeoning market for the ultra-rich. Citigroup, Deutsche Bank, UBS and JPMorgan Chase have recruited private bankers, while Azura Partners, a wealth manager founded by a former Julius Baer Group, is relocating its headquarters to Abu Dhabi from Monaco.

Rothschild’s move is also another sign that major banks have shrugged off the geopolitical instability that marked the region in previous months. The world’s richest people and their wealth managers continue to flock to the region, lured by low taxes, business-friendly regimes and year-round sunshine.