Aliko Dangote, the richest man in Africa, is making a strategic move by establishing a family office in Dubai.
With a net worth of $13.2 billion, Dangote aims to diversify his investments beyond the industrial sector, focusing on global opportunities.
Dangote, known for his vast holdings in commodities such as cement and sugar, recently announced his plans in an interview.
The 67-year-old businessman told Bloomberg, “We are looking to collaborate with other families and firms to tap into their specialized knowledge.”
He emphasized that the goal is to avoid “reinventing the wheel” and to approach investments gradually.
His daughter, Halima Dangote, has relocated to Dubai to oversee the family office’s operations.
This office is situated within the Dangote Group’s existing property in Dubai, which has been in his possession for 17 years.
Despite much of his wealth being rooted in Nigeria, Dangote’s decision to base his family office overseas is largely influenced by Nigeria’s economic challenges.
“The naira has depreciated by over 50% in the last year,” he said.
This instability has made it one of Africa’s weakest currencies, prompting Dangote to seek more stable environments for his investments.
Dangote’s relationship with Dubai isn’t new.
A decade ago, a major Dubai holding company invested in his cement firm, marking their first significant investment in Africa.
He has also invested in Alterra Capital Partners, a private equity fund focused on Africa, which indicates his ongoing commitment to the continent.
Dangote’s move highlights Dubai’s growing attraction for billionaires worldwide.
The city offers favorable tax policies, low crime rates, and a strategic location that connects multiple continents.
According to a recent report by Henley & Partners, the United Arab Emirates (UAE) is expected to be the top destination for millionaire relocations this year.
The Dubai International Financial Centre (DIFC) has reported a significant rise in registered foundations, which are often used by wealthy families to manage their wealth.
Last year, the number increased by 53%, showing the city’s appeal to the super-rich.
Dangote’s establishment of a family office in Dubai is part of a larger trend among wealthy individuals seeking stability and new opportunities outside their home countries.
With financial challenges in Nigeria, more affluent Nigerians may consider similar moves.
Neighboring Abu Dhabi is also attracting billionaires, managing about $1.5 trillion in assets through its sovereign wealth funds.
This city holds 6% of the world’s proven oil reserves and continues to be a magnet for global investors.
