Private banking in Dubai

There is arguably far more to professional wealth planning and asset management than a private bank in the UAE can and should provide.

What’s important for affluent families from one country and living in another, is that some local retail banks have set up ‘private banking’ divisions. These are typically staffed by young, inexperienced salespeople, employed to sell certain products (often structured) that earn them bonuses, and maximise their companies profits. This misalignment of incentive means the client experience and outcome is therefore a second priority – if even a priority at all.

A wealth-owning family typically needs a trusted adviser/steward that is not only able to take charge of asset management in relation to liquid assets, but who is able to help the family with investments in property and anything else the family is interested in.

There may also be a family business in the picture and certainly asset protection, succession planning, and tax minimisation will be topics of interest to the family. But the structure of a private bank typically means the salespeople (given they are typically less qualified than professional advisers) are entirely incentivised by the private bank to focus on income in terms of funds under management, sales of structured products, discretionary management services and loans. For an insider’s look into the life of a private banker and how they make money, read this story in The Guardian.

Not only do the products of private banks in Dubai often match up poorly against those offered from the wider marketplace, but they may confine advice to products rather than the family’s entire balance sheet/holistic position.

What clients of private banks really need before committing to a relationship is a trusted family adviser, and continuity in relationships that avoids the family having to re-educate relationship managers given the turnover and staff suffered (or encouraged) by the industry today (50% of private bankers quit within 21 months).

Wealth owners need to understand how parts of the banking industry often works (mercenary private bankers incentivised by numerous other private banks to flip their client relationships and churn their accounts for golden payouts) and the inability of those within private banking to align their businesses with the interests of their clients.

You only have to Google ‘private-banking scandals’ to find 93.3 million results.

There are certainly some private banks and trust companies that do get it right though, and to find them, wealth owners have to know what they’re looking for and ask the right questions to receive the benefits of private banking.

The repeated high-profile failings of private banks have led to the creation of an asset management profession and both the multi-and single-family office, as ways for those with significant wealth (and awareness) to attempt to obtain better long-term outcomes. 

Following Covid-19, Dubai has become a go-to destination for high-net-worth individuals (HNWIs). In 2024, the UAE attracted an estimated net inflow of over 6,700 millionaires, the highest of all countries globally.

This has been driven by Dubai's quality of life and high standards of living, tax-free income, status as a travel hub, growing global reputation as a financial centre and geo-peolitical uncertainty in other countries around the world.

Private banks are looking to take advantage of this trend to attract new affluent residents looking for high net worth private banking and wealth management in Dubai, with new and existing banks increasing promoting themselves as the best private bank for HNWIs.

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1. Best Private banks for Senior professionals in Dubai

• Pricing abuse 
• Poor performance/churn 
• Conflicted advice due to internal sales quotas/incentives 
• High turnover of relationship managers 
• Low professional qualification/skill and experience of individuals 
• Misalignment of focus (inability to be holistic or independent)
• No actual ‘planning’ services 
• Poor service generally 

The above issues have resulted in many well-informed families fleeing the private banking sector, turning to individuals (who may have left a private bank in favour of an independent firm) to offer them what they do not get from banks. The independent wealth adviser, private asset manager, single family office, multi-family office and family business advisers are all products of the failings of the private banking and wealth management industry to serve the real needs of families. 

Choosing the right service for high net worth private banking depends on a clear understanding of your financial goals, investment needs, and long-term objectives. As we have seen, not all private banks in Dubai operate in the same way, and the level of service, expertise and product range can vary significantly.

For those seeking the best private bank in the UAE for wealthy individuals, it’s important to evaluate more than just reputation, or how good your private banker makes you feel about yourself. Factors such as service quality, adviser capability, investment expertise, access to exclusive investment opportunities, lending terms, and the flexibility to structure agreements based on your own private banking requirements all play a role in determining what's a right fit for you and your family.

Navigating global private banking regulations is essential, especially for international clients who need to understand compliance requirements, tax implications, and reporting obligations in multiple jurisdictions. You may want to consider how well your private banking solution may perform if you choose to repatriate to your home country, and if your private banker is truly able to serve you properly to manage this transition.

Ultimately, the best approach is to consider whether a private banking service is the right strategy to prioritise transparency, cost efficiency, and the ability to meet your goals.

Gain more insights here.

Discovering the nature of the private banking world may be disturbing but also invaluable.

Our Co-CEO, Sam Instone explains:

When I first become an expatriate 17 years ago, I was extremely fortunate to open a private banking relationship that has very much served as the bedrock upon which I've built my families finances.

NedBank Private Wealth had a wide range of the perfect services and traditions then and has moved from strength to strength ever since. I'm a huge believer that the right banking relationship can make a huge impact on your overall finances and well-being. 

Ensuring the bank you choose shares your values, offers the breath of planning services you require and delivers excellence in every aspect of a relationship is far more challenging than many high and ultra-high net-worth individuals realise. 

We’re here to help and I'm always happy to share more of my personal experiences with anyone who asks.

For the new generation of wealthy families and individuals, paying a bank to simply preserve and manage their money is becoming less attractive considering low interest rates, government deficits, public spending cuts and growing global environmental concerns.

Wealthy clients, conscious of these global challenges, are looking for organisations that can help them reach their financial goals while keeping a keen eye on what’s happening in the world around them and helping them manage their responses to these events – on a behavioural and emotional level. 

This, however, was never the role of the traditional private bank in Dubai

While affluent investors do not expect their wealth managers to be perfect, they want to know their bankers and advisers understand and respect their desire to align their wealth with their values.

For these investors, advisers are almost always necessary, but it is critical for wealth-owning families to understand the role, and to manage their advisers the right way. Finding the right adviser requires that families know what they need and know who they are looking for. In essence, a good adviser is one who has the interest of their clients at the forefront, and positions themselves as a true, trusted fiduciary. 

Innumerable instances exist of family wealth being devoured by banks. Bad investments, bad loans and bad advice. This is perhaps not surprising given many private banks are jack of all trades and masters of none. 

Letting a private bank "kidnap" your wealth can be detrimental without detailed thought. There are many situations of private bankers becoming the gatekeepers to a family’s wealth, using wealth that is not theirs to benefit themselves. It pays to keep an eye on the detail.