By Hadeel Al Sayegh
DUBAI (Reuters) -Liechtensteinische Landesbank (LLB) is withdrawing from the United Arab Emirates and will refer its Gulf clients to Rothschild & Co, the two firms said in separate statements on Tuesday.
The agreement covers private banking clients in Dubai and Abu Dhabi, where LLB is closing its offices. The bank said it would recommend Rothschild & Co Bank AG as a future partner for clients in the region.
The potential value of referred assets is estimated at about 1 billion Swiss francs ($1.25 billion), according to the firms.
Rothschild & Co said it plans to retain all current LLB staff in the UAE, about 20 employees, and to take over the bank’s existing Dubai office. Following the integration, Rothschild & Co’s Middle East wealth management team, led by Sascha Benz, will total around 25 people, the bank said.
The move comes as wealth managers consolidate and offshore hubs shift, with the UAE rising as a post-pandemic private wealth centre. Smaller European banks, meanwhile, face mounting compliance costs abroad.
Founded in 1861, LLB is majority-owned by the principality of Liechtenstein and operates across several European markets. Rothschild & Co, meanwhile, has been expanding its global wealth management footprint, including in the Middle East.
($1 = 0.8019 Swiss francs)
(Reporting by Hadeel Al Sayegh; Editing by Jamie Freed)
