HSBC Expands UAE Presence With New Asset Management Business and Onshore Funds

HSBC has announced the launch of a new onshore asset management business in the United Arab Emirates, marking a significant expansion of its footprint in the Gulf region. As part of this move, the London-headquartered bank will introduce 10 onshore investment funds regulated in the UAE, aiming to capture the growing demand from high-net-worth individuals and institutional investors seeking locally regulated investment solutions.

According to HSBC, the decision reflects the bank’s long-term commitment to the UAE and the wider Middle East, where wealth inflows have accelerated in recent years. Dinesh Sharma, HSBC’s Regional Head of International Wealth and Personal Banking for the Middle East and Turkey, said the investment is focused on tapping into the “significant and long-term wealth opportunity” in the UAE. He highlighted strong client demand for onshore asset management structures that operate under UAE regulations, which offer greater transparency and regulatory comfort.

The UAE has increasingly positioned itself as a global wealth hub, attracting affluent individuals due to its business-friendly environment, strategic time zone bridging Asia and Europe, and tax-efficient framework. This trend has encouraged several global asset managers to either establish new operations or expand existing ones in the country, intensifying competition in the regional asset management market.

HSBC’s UAE expansion comes as the bank continues a broader global restructuring that began in 2024. The overhaul has seen HSBC streamline its worldwide operations, reorganize its business along East-West lines, and exit smaller, less profitable investment banking units. Despite scaling back in some regions, the bank has doubled down on growth markets such as Asia and the Middle East, where wealth management and asset management remain key strategic priorities.

To lead the new UAE asset management entity, HSBC has appointed James Grist as general manager. While the bank did not disclose details regarding staffing levels or the size of the local operation, the appointment signals a clear intent to build a dedicated onshore platform. HSBC Asset Management oversees $852 billion in assets under management as of the end of September last year, underscoring the scale and experience it brings to the UAE market.