Alhaji Aliko Dangote, President of Dangote Group is planning to set up a family office in Dubai, joining other global billionaires who have flocked to the Middle East’s financial hub over the past few years.
The Nigerian billionaire with a $13.2 billion fortune, is the wealthiest African and the 168th-richest person in the world, according to the Bloomberg Billionaires Index.
He made his fortune from commodities like cement and sugar, and recently opened a $20 billion oil refinery, the largest of its kind in Africa.
His family office in Dubai will seek out global investments to diversify the group’s holdings beyond industrials, Dangote, 67, said in an interview on Monday.
It will initially look to co-invest with families, firms or institutions that bring special expertise of sectors and companies.
“It’s not good to reinvent the wheel,” Dangote said. “We’re new and we want to do it gradually.”
His daughter Halima moved to Dubai last month to manage the firm that’s based out of Dangote Group’s office, which the billionaire said he owned for 17 years.
While a large part of Dangote’s assets are in Nigeria and elsewhere in Africa, his holding company is based overseas, the business mogul said. That’s because of weakness in the naira, which has snowballed more than 50% in the past year and is the continent’s worst-performing currency after the Ethiopian birr.
Though, this strategic relocation highlights a common trend among ultra-high-net-worth individuals (UHNWIs) seeking stable, low-tax jurisdictions to manage their wealth.
Dubai, known for its regulatory flexibility and geographic advantage as a gateway between East and West, has become an important hub for family offices and financial operations in recent years.
Moreover, Dangote’s decision is also seen as a response to the increasingly challenging economic environment in Nigeria.
His refinery, a massive $20 billion investment, has faced multiple setbacks due to delays and regulatory hurdles.
The Nigerian economy, trailed by uncertainty, has pushed many of its wealthiest individuals to seek more stable environments for business and investment.
As Dangote transitions his wealth management operations to Dubai, the move underscores the increasing shift of capital from Africa’s largest economy to the Middle East.
However, with Dubai’s family office sector growing increasingly, the city is poised to further solidify its reputation as a leading global financial hub for UHNWIs.
