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SAFEGUARDING CAPITAL A RAINFALL OF OPPORTUNITIES
Even if you’re dealing with a proud native Emirati
who has no interest in moving to the United States
or sending his children overseas, you can still appeal
to his bottom line. Several surveys have shown a
steadily shrinking risk appetite among the wealthy in
the Middle East. For example, in 2014, 90 percent of
HNWIs in the UAE considered growing their wealth
a greater priority than preserving wealth. In 2018,
that dropped to only 62 percent focused on growing
rather than protecting their wealth. 5 Yet in the same
time period, interest in American investments has
plummeted. Asia, the non-Gulf Cooperation Counil
Middle East region and Europe, in that order, are the
preferred regions to invest in today. Only 17 percent
of those polled considered North America their first
choice for new investments. 6 Hopefully, this advice have sparked your creativity and
relieved some of the stress caused by recent changes
in the industry. The times are a changing, but the sky
is far from falling. In fact, it’s raining opportunities to
rope in a new breed of well-heeled clients. No matter
how frustrating it is to pivot and adapt our pitches for
a new and more skeptical audience, don’t forget that
the incredible value of a green card for Middle Eastern
investors hasn’t changed. Which means that any
company that can work around the obstacles and better
communicate that value to investors will not only survive,
but thrive as they stand head and shoulders above the
competition in this more challenging environment.
That might make for grim reading at first glance,
but in practical terms, this gives you two hidden
opportunities to better show off the value of your
proposition. The first is wealth conservation. While
returns in the United States, and especially in these
regional investment centers, won’t match their
favorite investments in emerging markets across Asia
and the Middle East, that’s because the U.S. real estate
market is far safer. When evaluating macroeconomic
risk, the U.S. market is supported by a much more
diverse economy that can absorb financial shocks
without crashing real estate prices. For example,
a change in government, currency fluctuation or
sudden drop/rise in oil prices won’t suddenly put their
project in the United States at risk the same way it
would in a developing nation’s economy. This is not to
mention the stronger regulatory oversight in America
that greatly reduces the risk posed from corruption or
less-than-transparent accounting practices.
Second is control and new oppor tunities. When
investing in any foreign land, you will have to rely on
third-party agents. But having permanent residency
in the United States gives you greater control and
oversight of your investments, the opportunity to
sidestep foreign ownership restrictions, and grants
several ancillary bonuses for you and your family.
The dist inct ion bet ween a foreig n investor and
immigrant investor is no minor point. Some of the
most lucrative investment options in the United
States are subject to a variety of restrictions and
red tape on foreig n ow nership, which generally
don’t apply to permanent residents. That green card
also allows you to open up U.S. financial accounts,
instead of relying on intermediaries. In the event
of legal trouble, as a resident you have more and
easier options to sue the other party in your local
ju r i sd ic t ion i n stead of b e i ng force d to re ly on
contractual arbitration clauses.
A bbas H ashmi
is an investment banker who specializes in
global family office administration and has investor immigration
expertise. Hashmi has carved his space and been a leader
in EB-5, spearheading marketing initiatives in South Asia and
the Middle East prior to the Chinese retrogression. Hashmi is
an acclaimed speaker, invited to conferences internationally
to speak about various topics, including wealth management,
next-generation wealth planning, entrepreneurship and investor
immigration. Hashmi has offices in New York, Hong Kong, Dubai,
India, Pakistan and the Philippines.
Sources
1
Emirates Investment Bank. (2018) GCC Wealth Insight Report 2018. P. 25.
Retrieved on 12 December 2018 at: https://www.eibank.com/assets/pdf/GCC_
Wealth_Insight_Report_2018.pdf
2
US Customs and Border Protection. (2017, June 28). Can a U.S. lawful permanent
resident leave multiple times and return? Retrieved on 12 December 2018 from:
https://help.cbp.gov/app/answers/detail/a_id/820/~/can-a-u.s.-lawful-
permanent-resident-leave-multiple-times-and-return
3
Sheng, E. (2017, January 26). New proposal seeks to raise minimum investment
for EB-5 visa. Forbes Online. Retrieved on 12 December 2018 from: https://www.
forbes.com/sites/ellensheng/2017/01/26/new-proposal-seeks-to-raise-
minimum-investment-for-eb-5-visa/#4ca2decd2ee1
4
Maceda, C. (2018, November 26). Why 38,000 multi-millionaires move to the
UAE. Gulf News Business. Retrieved on 12 December 2018 from: https://
gulfnews.com/business/personal-finance/why-38000-multi-millionaires-move-
to-the-uae-1.1543228628312
5
Emirates Investment Bank. (2018) GCC Wealth Insight Report 2018. P. 31.
Retrieved on 12 December 2018 from: https://www.eibank.com/assets/pdf/
GCC_Wealth_Insight_Report_2018.pdf
6
Emirates Investment Bank. (2018) GCC Wealth Insight Report 2018. P. 34.
Retrieved on 12 December 2018 from: https://www.eibank.com/assets/pdf/
GCC_Wealth_Insight_Report_2018.pdf