Wealthy Rush to Find Refuge: This City Emerges as a Safe Haven for the Affluent Amid Middle East Conflict

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Amid the ongoing conflict in the Middle East between the United States, Israel, and Iran, reports have emerged that a small Swiss city is becoming a refuge for wealthy individuals from the Gulf region.

Scenic view of the city of Zug, Switzerland. Official website of Switzerland Tourism

According to Yonhap News Agency on April 12 (local time), citing the British daily Financial Times (FT), “With no sign of resolution in the Middle East conflict, wealthy foreign residents who had been living in places such as Dubai, United Arab Emirates (UAE), are flocking to Zug, near Zurich, Switzerland, seeking a safe haven away from the turmoil.”

Zug is a small city with a population of 135,000, known for its picturesque scenery of mountains and lakes characteristic of Switzerland. In addition, its proximity to Zurich and low corporate tax rates have made it a well-known base for commodity trading and cryptocurrency companies. Notably, in 2016, the city officially accepted cryptocurrencies such as Bitcoin as a means of payment, drawing over 500 blockchain companies to the area.

According to Yonhap News Agency, clients working in the commodities and finance sectors and living in Dubai are searching for a stable European base, with Zug being considered the top choice. Pierre Gabris, CEO of Swiss asset management firm Alpen Partners, told the FT, “Even if you have never been to Zug, everyone knows it,” adding, “The first request from clients is almost always Zug.”

A view of the Emirates Mall in Dubai, United Arab Emirates (UAE), a photo to help understand the article. Photo by Reuters Yonhap News Agency

Heinz Tännler, the finance chief of Zug City Hall, said, “Interest from wealthy individuals and companies in relocating here has grown since the outbreak of the Middle East conflict.” He noted, “There has been a recent surge in inquiries. While the war situation is regrettable, the reality is that Zug is benefiting.” A representative of a Swiss private bank also stated, “Since the start of the Middle East war, the number of resumes from client managers with experience at U.S. banks wishing to move to the Zug branch has quadrupled.”

As a result, demand for real estate is reportedly surging. One finance industry worker said, “Recently, I attended a public viewing to find a tenant for a two-bedroom rental apartment, and the line of people waiting to get in wrapped around the apartment block.” He added, “The person standing behind me had just arrived from Dubai that very morning.”

Meanwhile, as it becomes more difficult to find housing in Zug, where German is spoken, inquiries about relocating to cities such as Lugano in the Italian-speaking canton of Ticino are also on the rise. Real estate firm Engel & Völkers said, “Since the Middle East conflict began, inquiries from Italians, French, Swiss, and British residents in Dubai have increased,” adding, “There is still inventory available in Lugano.”

This content was produced with the assistance of AI translation services.