Africa’s richest man plans to establish a family office in Dubai

Nigerian billionaire Aliko Dangote has announced plans to establish a family office in Dubai, joining the growing number of high-net-worth individuals who have been drawn to the Middle East’s financial hub in recent years, Bloomberg reported.

With a fortune of $13.2 billion, Dangote is Africa’s wealthiest person and ranks 168th on the Bloomberg Billionaires Index.

Dangote’s financial empire is rooted in Dangote Industries, a conglomerate headquartered in Lagos, Nigeria. The 67-year-old billionaire derived the majority of his fortune from his 86 per cent stake in publicly traded Dangote Cement.

His influence extends to sectors such as sugar, salt, fertiliser, packaged foods, and the recently commissioned $20 billion petroleum refinery, now Africa’s largest.

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Dangote said his Dubai-based family office will focus on global investments to diversify the group’s portfolio beyond industrials. The office will seek co-investment opportunities with families, firms, or institutions offering specialized expertise in various sectors and companies.

“It’s not good to reinvent the wheel,” Dangote said. “We’re new and we want to do it gradually.” His daughter Halima moved to Dubai last month to manage the firm that’s based out of Dangote Group’s office, which the billionaire said he’s owned for 17 years.

Although a huge portion of Aliko Dangote’s assets are rooted in Nigeria and across Africa, his holding company is strategically based overseas.

This move, the billionaire explained, is largely driven by the weakening of the naira, which has depreciated by over 50% in the last year, making it one of the continent’s worst-performing currencies.

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Dangote’s ties to Dubai are well-established. A decade ago, the emirate’s primary holding company made its first major African investment by acquiring a minority stake in his cement business.

Beyond his industrial ventures, Dangote is also a key investor in Alterra Capital Partners, an Africa-centric private equity fund spun off from Carlyle Group Inc. in 2022. Additionally, he has backed Gateway Partners, a private equity firm focused on emerging markets, founded in 2014.

In recent years, Africa has seen a rise in its number of billionaires, but at the same time, many millionaires have left the continent. Over the past decade, almost 20,000 ultra-rich individuals have moved away or seen dramatic currency depreciations eat away their wealth.

DON’T MISS THIS: African billionaires are fleeing their home continent amidst economic downturn.

Dubai is a major hotspot for the ultra-wealthy and their investment firms, thanks to its favourable tax regime, low crime rates, and strategic location at the crossroads of multiple continents and time zones.

According to a report from migration advisory firm Henley & Partners, the United Arab Emirates, which includes Dubai, is set to become the leading destination for relocating millionaires this year.

In response to this influx, Dubai’s financial hub has actively sought to attract family offices—private investment vehicles utilized by the extremely affluent.

Recent data from the Dubai International Financial Centre (DIFC) reveals a remarkable 53% increase in the number of registered foundations, a common structure for wealthy families.

This combination of factors has solidified the UAE’s status as a prime destination for global wealth.