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Why UAE millionaires turn to gold, fixed income assets during geopolitical conflict
Experts say that during times of conflict, UAE's affluent families are strategically reassessing portfolios and increasing liquidity, choosing gold and global diversification over a rush for the exits
- PUBLISHED: Tue 19 May 2026, 9:15 AM UPDATED: Tue 19 May 2026, 9:16 AM
Where do millionaires go when disaster strikes? High-Net-Worth-Individuals have a reputation of being the first to relocate when disaster strikes, but experts say that the UAE’s millionaires did not rush for the exits. Instead, wealth managers say many affluent families reassessed portfolios, increased liquidity and looked for tactical opportunities while keeping the UAE at the centre of their financial plans.
Industry executives told Khaleej Times that geopolitical shocks are increasingly prompting wealthy investors to diversify across jurisdictions, strengthen wealth structures and rebalance into assets that offer stability and flexibility.
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“Geopolitical uncertainty does influence investor behaviour, but sophisticated clients rarely react impulsively,” said Shivkumar Rohira, Klay Group’s CEO of Europe, Middle East, and Africa. “What we typically see is a strategic reassessment of portfolio resilience, liquidity positioning, and geographic diversification.”
According to Rohira, many globally active families are strengthening exposure across Asia and Europe while maintaining a firm presence in the Middle East. He stressed that the strategy is focused on long-term resilience rather than short-term relocation.
More mature approach
Dubai’s position as a global financial hub has also helped calm investor nerves during periods of instability. Wealth advisers say UAE-based investors are now approaching crises with greater maturity compared to previous market cycles.
“High-net-worth families in the UAE are approaching the current environment with a far more measured and institutional mindset than in previous cycles,” Rohira added. “It’s a reassessment, not a rush for the exits.”
Executives say the first reaction during periods of volatility is usually not liquidation, but repositioning. Investors tend to increase liquidity, reassess leverage and reduce concentration risk before making larger structural decisions.
Finding opportunities in crises
Founder & CEO of Elevate Financial Services, Madhur Kakkar, said wealthy investors are increasingly looking for opportunities created by volatility rather than simply moving into defensive positions.
“The first reaction from HNWIs and UHNWIs is usually to ask: ‘Where is the opportunity?’” Kakkar said, adding that investors are selectively increasing exposure to commodities such as oil and gold, adding short-term fixed income products, and taking tactical positions in discounted equities and energy-linked opportunities.
“Periods of uncertainty often create highly attractive short-term pricing inefficiencies,” he said.
Kakkar added that reaction times have accelerated significantly because wealthy investors now have access to real-time execution platforms, AI-assisted analytics and global markets directly through digital platforms.
Still, major long-term assets such as real estate, private businesses and strategic holdings are generally not being sold quickly.
Executives also pointed to rising interest in UAE equities, particularly sectors linked to the domestic economy such as banks, infrastructure, telecoms, logistics and utilities.
Gold continues to remain a preferred hedge during crises, while fixed income products are regaining popularity as investors prioritise predictable returns and capital preservation.
For many wealthy families, however, the broader concern is no longer just investment performance, but flexibility.
Alexander Varghese, the sales director of alternate channels at Continental Group, said affluent investors are increasingly reviewing residency options, succession structures and international access as part of wider risk management planning.
“Residency, citizenship, and holding structures are now part of the larger risk-management discussions,” Varghese said. “Families want to know where they can live, where their assets are held, how succession will work, and how easily the next generation can operate across borders.”
Despite increasing diversification into Europe and Asia, wealth managers insist the UAE remains central to most family offices and investment structures.
Kakkar, the founder of Elevate, described the UAE as an operational and financial base from which global allocations are made, which is heavily supported by long-term visas, fintech expansion, business reforms and growing capital market depth.
Rohira said many internationally active families already utilise financial hubs such as Switzerland, Singapore and Hong Kong for custody and investment purposes, but current moves are more about recalibration than relocation.
Hind Aldah is a business reporter based in Sharjah. In her spare time, you will find her playing classical guitar, painting amateur oil paintings, or crocheting the same old scarf that leads nowhere.