DUBAI, U.A.E.: As global banks intensify their focus on fast-growing wealth hubs, HSBC is setting up an onshore asset management business in the United Arab Emirates, aiming to capture rising investor demand in the Gulf.

The London-headquartered lender said Monday it will launch 10 onshore funds in the UAE, marking a significant expansion of its asset management presence in the country as wealth continues to flow into the region.

"Our investment in building an onshore asset management business is about capturing the significant and long-term wealth opportunity in the UAE," Dinesh Sharma, HSBC's Regional Head of International Wealth and Personal Banking for the Middle East and Turkey, said in a statement, citing demand for asset structures regulated locally.

The UAE has, in recent years, attracted an influx of high-net-worth individuals, drawn by factors such as the ease of doing business, favourable time zones, and tax-free status. That trend has prompted several global asset managers to establish or expand operations in the country.

HSBC's move comes as the bank reshapes its global operations under an overhaul launched in 2024, which has included reorganising its business along East-West lines and scaling back sub-scale investment banking activities in some markets. As part of that strategy, the lender has prioritised growth in regions such as Asia and the Middle East.

To lead the new venture, HSBC has appointed James Grist as general manager of its UAE asset management entity. The bank did not disclose details about the size of the business or staffing levels.

HSBC Asset Management oversaw US$852 billion in assets under management as of the end of September last year, underscoring the scale of the business the bank is looking to extend into the UAE market.