Aliko Dangote, Africa’s richest man, has announced plans to open a family office in Dubai, joining a rising trend of global billionaires seeking solid asset protection in the United Arab Emirates (UAE).
Dubai, the UAE’s most populated city, has become a magnet for ultra-wealthy individuals looking to protect their riches in an increasingly uncertain global environment.
Dangote, 67, is expanding his industrial empire, which includes cement, sugar, fertilizer, and a newly functioning $20 billion oil refinery in Lagos.
The Nigerian entrepreneur, worth $13.2 billion according to the Bloomberg Billionaires Index, has opened a family office in Dubai to diversify his interests outside Africa and grow into global investments.
Dangote’s family office will begin by focusing on co-investments with other families, firms, or institutions that have specific knowledge in a variety of areas.
The Dubai office will mark a new chapter in the Dangote Group’s strategic expansion, broadening its portfolio beyond industrial industries and into global financial markets.
His daughter, Halima Dangote, just relocated to Dubai to run the office, which is located on a property owned by the tycoon for 17 years.
Dangote’s recent move expands his investment portfolio, which already includes backing for Alterra Capital Partners, an Africa-focused private equity fund carved out of Carlyle Group Inc., and Gateway Partners, an emerging-markets manager founded in 2014.
Both activities are consistent with Dangote’s overall strategy of capitalizing on global opportunities to preserve and grow his riches.
The UAE’s attractiveness for billionaires like Dangote is due to its favorable tax structure, low crime rates, and strategic location at the crossroads of Europe, Asia, and Africa.
These elements have transformed the city into a burgeoning global hub for high-net-worth people (HNWIs) wishing to move their wealth.
Dangote’s decision follows Egypt’s richest man, Nassef Sawiris, who said in 2023 that he would relocate his family office to Abu Dhabi, highlighting the UAE’s rising appeal to global elite.
Dangote and Sawiris are part of a larger trend of affluent individuals looking for safe, tax-friendly jurisdictions to shelter their assets as global economic uncertainty grows.
Henley & Partners, a migration consultancy organization, predicts that the UAE would be the #1 destination for millionaires in 2023.
The country’s favorable regulations and targeted attempts to attract family offices have made it a popular destination for high-net-worth individuals from India, Russia, the United Kingdom, and Africa. The UAE expects a record number of millionaires this year, substantially above pre-pandemic levels.
Dangote’s decision to establish a family office in Dubai not only provides a secure platform for asset preservation, but it also symbolizes his larger aim to engage in global investments while remaining closely tied to his African corporate empire.
His decision represents an increasing trend among African millionaires seeking diversification in stable, globally linked cities such as Dubai.
