More than a dozen banking experts and financial advisors, with total managed assets worth more than 1,000 billion USD, are optimistic that Switzerland will attract more money from the Middle East, especially after Iran's attacks on Gulf countries.
Switzerland has long been considered a safe haven by investors but is also facing increasing competition from financial centers in the Middle East and Asia. However, the amount of cash sent to Switzerland by individuals and non-bank organizations from the United Arab Emirates has increased by about 40% in the past 3 years.
This was further fueled after Israeli and US attacks on Iran in June last year, according to Patrik Spiller, head of asset management at Swiss consulting firm Deloitte.
Due to recent events, we predict assets from the Middle East will increasingly be recorded in Switzerland. We have received information from banks, family offices and other individuals with high net assets that discussions are underway," Mr. Spiller said.
The Swiss Banking Association (SBA) said it could not comment in detail on capital flows from the Middle East since recent attacks on Iran, but noted that Switzerland has long positioned the country as an attractive destination for wealthy investors.
After the attacks by the US and Israel on Iran, the Swiss franc reached its highest level against the euro in a decade.
Although it may take weeks or months for capital inflows into Switzerland to be recorded, the country may eventually receive tens of billions of USD inflows from this region, Mr. Spiller predicted.
But that will depend a lot on the diễn biến of the conflict and the duration of the conflict" - he added, noting that cash is often prioritized first, then assets such as stocks or bonds.
Private bank Pictet, ranked second in total assets under management (AuM) in Switzerland, said it is receiving requests from customers, but the increase is not considered significant.
We reported a record high of AuM at the end of the year, despite a weak USD, and the positive trend has continued since the beginning of the year," Mr. Pictet added.
Till Budelmann - investment director at Bergos, a private bank based in Zurich with about 8 billion Swiss francs (10 billion USD) of managed assets, said that the Iranian conflict has brought Switzerland back to the center of attention, including for European investors.
Mr. Budelmann said that a European investor considering opening an account requested an immediate meeting to begin this process after the Iranian conflict broke out.
Although it is too early to quantify the flow of capital that may flow into Switzerland, Mr. Budelmann sees that the conflict has "promoted Switzerland to become a safe haven".
