HSBC Becomes First Global Asset Manager to Launch Onshore Funds in UAE

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HSBC Launches 10 SCA-Regulated Onshore Funds In UAE, Marking Historic First For Global Asset Managers. Expands Locally Regulated Investment Options.

HSBC Asset Management has established a UAE branch and registered 10 onshore funds with the Securities and Commodities Authority (SCA), marking the first time a global asset manager has launched a complete onshore fund platform in the Emirates. The move positions HSBC as a pioneer in the UAE's evolving regulatory landscape for locally domiciled investment products.

The 10 UAE-domiciled funds offer retail and institutional investors access to globally diversified strategies managed by HSBC's network of more than 600 investment specialists. This development expands the range of locally regulated investment options available to UAE-based wealth managers, family offices, and private banking clients who have historically relied on offshore structures.

Strategic Significance for UAE's Financial Hub Ambitions

The launch underscores the UAE's progress in building the regulatory and operational infrastructure needed to compete as an international asset management centre. By enabling global managers to domicile funds onshore, the SCA's framework reduces structural barriers that previously pushed asset managers toward offshore jurisdictions such as Luxembourg, Ireland, or the Cayman Islands.

For wealth management professionals operating in the UAE, the availability of SCA-regulated funds simplifies client onboarding, regulatory reporting, and tax documentation compared to offshore alternatives. Onshore funds can also be structured to accommodate Sharia-compliant mandates and local currency preferences, addressing specific requirements of Gulf-based investors.

Product Range and Investment Capabilities

While specific fund names and strategies have not been publicly detailed in initial announcements, HSBC's global product suite typically spans equities, fixed income, multi-asset solutions, and alternative investments. The firm's investment teams operate across major financial centres including London, Hong Kong, New York, and Singapore, providing the geographical reach and sector expertise required to manage diversified portfolios.

The integration of HSBC's 600-plus investment professionals into the UAE platform suggests that the onshore funds will mirror the risk-return profiles and asset allocation methodologies used in the bank's established offshore ranges. This continuity is important for institutional clients and multi-family offices that conduct due diligence on track records and investment processes before allocating capital.

Implications for UAE Wealth Management Industry

The arrival of HSBC's onshore platform is expected to influence product selection decisions at UAE-based wealth management firms, which typically maintain approved product lists for client portfolios. SCA-regulated funds may receive preferential treatment in internal due diligence processes, particularly where firms prioritise locally supervised vehicles for compliance or marketing reasons.

The launch also creates competitive pressure on existing fund managers operating in Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), the UAE's two financial free zones. While DIFC and ADGM funds benefit from their own regulatory frameworks and international recognition, onshore SCA funds offer a distinct value proposition for clients seeking products governed by federal UAE law.

Regulatory Context and Market Timing

The UAE has undertaken significant reforms to its funds regime in recent years, introducing new regulations that align with international standards while accommodating regional market characteristics. These changes include updated rules on fund governance, valuation procedures, and investor protection mechanisms designed to attract institutional capital.

HSBC's decision to establish an onshore presence reflects broader trends in Gulf wealth accumulation, sovereign fund repatriation, and the region's growing importance in global asset allocation. According to industry reports cited by Gulf News and Zawya, the UAE has experienced substantial inflows of high-net-worth individuals and family offices, particularly following geopolitical shifts in other parts of the Middle East and regulatory changes that facilitate residency and business establishment.

Outlook for Global Asset Managers

HSBC's first-mover advantage in the onshore funds market may prompt other global asset managers to evaluate their UAE distribution strategies. Firms such as BlackRock, Fidelity, and Franklin Templeton maintain regional offices but have not yet launched full onshore fund platforms under SCA supervision, according to reporting by Bloomberg and finews.asia.

The success of HSBC's initiative will likely depend on investor adoption rates, the efficiency of fund administration and custody arrangements, and the ability to demonstrate competitive performance net of fees. For UAE-based advisors and wealth managers, the expansion of the onshore fund universe provides additional tools for portfolio construction while raising questions about how platforms will integrate these products into existing model portfolios and client recommendations.