---
title: "Citigroup expects that under the US-Iran conflict, Hong Kong is in a favorable position and is likely to attract capital and talent from the Middle East"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/278470648.md"
description: "Citigroup predicts that due to the US-Iran conflict, Hong Kong will be in a favorable position and may attract capital and talent from the Middle East. As several Asian wealthy families reassess their investment risks in Dubai, the Hong Kong family office JMS Group has arranged for clients to evacuate to Hong Kong. Analysis indicates that Hong Kong can enhance market activity by increasing bond issuance and developing green financial products. Citigroup's report states that geopolitical instability will prompt investors to reassess asset allocation, and Hong Kong is expected to attract some capital inflows"
datetime: "2026-03-10T01:32:15.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/278470648.md)
  - [en](https://longbridge.com/en/news/278470648.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/278470648.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/278470648.md) | [繁體中文](https://longbridge.com/zh-HK/news/278470648.md)


# Citigroup expects that under the US-Iran conflict, Hong Kong is in a favorable position and is likely to attract capital and talent from the Middle East

With the ongoing US-Iran war, several wealthy families in Asia are reassessing their investment risks in Dubai. According to Bloomberg, multiple private wealth advisors have indicated that clients are increasingly requesting to postpone relocation plans and even consider reducing investments in Dubai. Felix Lai, head of the Hong Kong family office JMS Group, also mentioned that he recently arranged private jets for 15 clients to evacuate from Oman to Hong Kong, with costs reaching USD 300,000 (approximately HKD 2.34 million). He candidly stated that clients "simply do not care about the price, they just want to leave." Analysts suggest that the turmoil in the Middle East is expected to attract capital inflows, boosting demand in the Hong Kong property market and capital market development.

## Hong Kong Will Welcome Some Middle Eastern Hedge Funds

Zhuang Tailiang, executive director of the Global Economic and Financial Research Institute at Chinese University, stated that the risks brought by the conflict have led some hedge funds to seek global allocation, with the UK, Switzerland, the US, and Hong Kong being potential options. He believes that Hong Kong will welcome some Middle Eastern hedge funds, although the specific scale is currently difficult to determine. He pointed out that Hong Kong can enhance the scale and activity of its bond market by increasing long-term bond issuance and attracting more mainland and international institutions to issue bonds in Hong Kong. It can also accelerate the development of green financial products, integrating Islamic and green attributes into Islamic green bonds, further aligning with the direction of Middle Eastern funds.

Citi also released a report indicating that geopolitical instability may prompt investors to reassess their asset allocation, driving potential capital rotation to neutral Asian financial centers such as Singapore and Hong Kong. The bank noted that given Singapore's enhanced anti-money laundering framework starting in 2024, China's relatively cautious stance on the US-Iran conflict, and Hong Kong's lower tax rates, it is believed that Hong Kong is in a favorable position to attract some capital inflows, and the influx of capital and talent into Hong Kong could enhance the demand for residential and office spaces

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