The escalating geopolitical situation in the Middle East in recent years has dealt a serious blow to Dubai’s position, which was known as the “Eastern Switzerland.” Previously, this city was regarded by international investors and billionaires as a calm, low-tax, and safe financial center, but now it is increasingly associated with an atmosphere of instability.
A turning point is considered to be the fall of debris from an Iranian drone on February 28 in the area of the famous Burj Al-Arab hotel. This incident destroyed one of Dubai’s main “selling points” — the image of absolute security and stability.
Media outlets, including NZZ am Sonntag, assess the situation as “a city that lost its investment attractiveness in a single day.” As a result, the real estate market began to cool rapidly: the number of transactions dropped sharply, turnover worth billions of dollars declined, and the stock market index also moved downward.
Against this background, wealthy individuals and owners of large capitals began searching for new “safe havens.” The main flow moved toward the Swiss canton of Zug. This region, with a population of only 135,000 people, is known for low taxes, a stable banking system, and a developed crypto industry.
Today, Zug is becoming a new center for the global elite. Local financial authorities and experts confirm a sharp increase in relocation requests. In some cases, even queues have formed to view two-room apartments — and among these people are billionaires who literally flew in from Dubai the day before.
However, the growing demand has also created a new problem — a housing shortage. In Zug, almost no free properties remain, and obtaining permits for foreign citizens has become extremely difficult. Therefore, the flow is partially shifting to neighboring regions, including the city of Lugano.
Lugano is now becoming an alternative center for investors from Europe, the United Kingdom, and other countries. Real estate agents note that demand here has also increased sharply.
At the same time, the authorities of the UAE are trying to retain outgoing capital by easing tax conditions and simplifying residency requirements. However, according to experts, the key factor remains trust in safety and stability.
Financial specialists emphasize that for wealthy people, the most important thing is not only income but also the guarantee of capital preservation. The current situation shows that the importance of old, reliable financial centers — especially Switzerland — is rising again.
In conclusion, geopolitical instability is causing one city to lose its position while another is turning into a new financial center.
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