• 11/26/2024

No ‘additional benefits’ for family offices, Hong Kong says, after Dubai sheikh’s business plan draws suspicion

Hong Kong Free Press

Sheikh Ali Rashed Ali Saeed Al Maktoum, the Dubai royal who claimed he will set up a family office in Hong Kong with a plan of US$ 500 million. Photo: Sheikh Ali Rashed Ali Saeed Al Maktoum's family office.

The Hong Kong government has neither invested in nor offered “additional policy benefits or financial support” to any family offices, a spokesperson has said, after news that a Dubai sheikh planned to set up a family office in the city triggered suspicion surrounding his identity and source of wealth.

Sheikh Ali Rashed Ali Saeed Al Maktoum, who said he was a nephew of the United Arab Emirates (UAE) ruler Sheikh Mohammed bin Rashid Al Maktoum, announced his plan to set up a family office in Hong Kong to manage up to US$500 million in a Bloomberg interview in March.

Sheikh Ali Rashed Ali Saeed Al Maktoum, the Dubai royal who claimed he will set up a family office in Hong Kong with a plan of US$ 500 million. Photo: Sheikh Ali Rashed Ali Saeed Al Maktoum's family office.
Sheikh Ali Rashed Ali Saeed Al Maktoum, the Dubai royal who announced plans to set up a family office in Hong Kong to handle US$500 million. Photo: Sheikh Ali Rashed Ali Saeed Al Maktoum’s family office.

The move attracted attention as Hong Kong has sought to attract the super rich to set up family offices with tax incentives. Al Maktoum was received by Hong Kong’s leader John Lee last Tuesday and gave a speech at a high-end summit last Wednesday, according to local media reports.

Additionally, The Hang Seng University of Hong Kong last Tuesday signed a memorandum of understanding with the sheikh’s family office and appointed Al Maktoum an honorary professor.

However, last Thursday, the Dubai royal announced that the opening of his family office would be delayed, citing urgent issues that needed handling in Dubai, local media reported.

Dubai Royal, Sheikh Ali Rashed Ali Saeed Al Maktoum, signed a a Memorandum of Understanding with the Hang Sang University on March 26, 2024. Photo: The Hang Seng University of Hong Kong.
Sheikh Ali Rashed Ali Saeed Al Maktoum, signs a memorandum of understanding with the Hang Sang University on March 26, 2024. Photo: The Hang Seng University of Hong Kong.

Suspicion surrounding the royal’s identity arose after the South China Morning Post (SCMP) reported that Al Maktoum resembled a singer who was popular in the Philippines. The TikTok account associated with the signer has not been updated since around the time the domain name of Al Maktoum’s private office was registered.

When asked whether he was a nephew of the UAE’s current ruler and royal, Al Maktoum told the SCMP that he was “a member of the family.”

Regarding the US$500 million, the sheikh said it came from his “own initiatives. “

Sheikh Ali Rashed Ali Saeed Al Maktoum signs a memorandum of understanding with the Hong Kong-Middle East Business Chamber in December, 2023. File photo: Sheikh Ali Rashed Ali Saeed Al Maktoum's family office.
Sheikh Ali Rashed Ali Saeed Al Maktoum signs a memorandum of understanding with the Hong Kong-Middle East Business Chamber in December, 2023. File photo: Sheikh Ali Rashed Ali Saeed Al Maktoum’s family office.

In a response to HKFP, a government spokesperson said on Friday that family offices brought opportunities to the financial industry and attracted capital to Hong Kong markets and philanthropic sectors. Since May 2023, Hong Kong has offered tax exemptions to single family offices.

“The government has not made any investments in family offices established in Hong Kong, nor will it provide any additional policy benefits or financial support,” the spokesperson said in the Chinese-language statement.

CEO from an ‘untrustworthy company’

According to local media outlets, Al Maktoum had hired local staff for his proposed family office, including CEO Eleanor Mak. Mak appeared in Bloomberg’s interview along with Al Maktoum and has issued multiple statements on his behalf.

According to an advertorial published by HK01, Mak is also chairperson of the China New Energy Skyrail International Company, a subsidiary of a Chinese group Zhongtang Air Railway Group.

Eleanor Mak, the CEO of the Sheikh Al Maktoum and the chairperson of China New Energy Skyrail International Company, speaks in an event of the Hong Kong-Middle East Business Chamber in March, 2024. Photo: Hong Kong-Middle East Business Chamber
Eleanor Mak, the CEO of the Sheikh Al Maktoum and the chairperson of China New Energy Skyrail International Company, speaks at an event for the Hong Kong-Middle East Business Chamber in March 2024. Photo: Hong Kong-Middle East Business Chamber.

The Supreme People’s Court has listed Zhongtang Air Railway Technology Company as “untrustworthy,” meaning the consumption and access to public transport of its representatives would be limited.

Along with pro-establishment lawmaker Bill Tang, Mak lobbied the Hong Kong government last July to build an elevated railway in East Kowloon.

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https://hongkongfp.com/2024/04/05/no-additional-benefits-for-family-offices-hong-kong-says-after-dubai-sheikhs-business-plan-draws-suspicion/