Switzerland and China have completed negotiations on an updated free trade deal that will increase the European major’s access to its third biggest trading partner.

Swiss president Guy Parmelin and China’s Commerce Minister Wang Wentao announced the conclusion of the talks after a meeting in Bern on Thursday (August 20).

Under the agreement, 99.8% of Swiss exports can enter the Chinese market duty free, upgrading an ⁠existing deal where the terms applied to only around half of shipments arriving from the European nation to the world’s second-largest economy.

Almost all Chinese exports to Switzerland are duty-free under the existing 2014 free trade agreement between the two countries, which was also Beijing’s first such deal with a European economy.

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Cross-border wealth refers to money that individuals or families hold in a country other than the one they live in. Think of a wealthy Indonesian family keeping investments in Singapore, or a European entrepreneur holding assets in Zurich. These arrangements are entirely legal and extremely common among the rich, and the city that attracts the most of this money earns enormous advantages, such as jobs, fees, taxes, real estate demand, and influence.

In 2025, Hong Kong booked USD 2.95 trillion in such assets, narrowly surpassing Switzerland’s USD 2.94 trillion. Executive Partners Analysis put the moment in perspective in May 2026: “Hong Kong now books $2.95 trillion in cross-border private wealth. Switzerland books $2.94 trillion. The margin is $10 billion on a base of nearly $3 trillion, which is to say the margin is almost nothing. But the direction is everything. This reversal is unlikely to be undone.”

The Rise of the East in a World of Abundance

The backdrop to Hong Kong’s rise is a year of spectacular global wealth growth. Total global financial wealth rose by 10.7% in 2025 to reach USD 333 trillion, the fastest expansion since 2021. If you include physical assets like property and land, total global net wealth approaches $550 trillion. Much of this growth was driven by surging stock markets, which rose 13.2% globally on average. Gold was a particular standout, jumping roughly 44% in the year, as central banks and retail investors alike rushed to buy the commodity amid concerns about the long-term stability of major currencies.

This wealth is not spreading evenly. Globally, cross-border assets grew by 8.4% to USD 15.7 trillion, but nearly 90% of all new offshore money flowed into just 10 booking centres. The result is a world increasingly divided into two gravitational poles: an Eastern Hub, anchored by Hong Kong and Singapore, pulling in wealth from mainland China, India, and Southeast Asia, and a Western Hub, dominated by Switzerland, the United States, and the United Kingdom, serving European, Middle Eastern, and Latin American clients.

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Hong Kong now sits atop both of these poles, and analysts project it will continue growing at around 9% per year through 2030. As BCG’s 2026 Global Wealth Report Stated: “Hong Kong is cementing its role as China’s gateway to global markets, though that same concentration ties its trajectory tightly to economic and regulatory developments on the mainland.”

The China Connection

The single biggest reason for Hong Kong’s ascendancy is its relationship with mainland China. More than 60% of the assets booked in Hong Kong come from mainland Chinese clients. This is the product of a deliberate policy architecture designed to channel mainland wealth through Hong Kong’s internationally trusted financial system.

The centrepiece of this architecture is the Cross-boundary Wealth Management Connect, commonly called the WMC, a scheme that allows residents of the Greater Bay Area, the cluster of cities in southern China that includes Shenzhen and Guangzhou alongside Hong Kong, to invest in financial products on either side of the border. When it was upgraded in early 2024, the scheme raised individual investment quotas and allowed a wider range of products and participants. By April 2025, over 154,000 individual investors from the Greater Bay Area were using it, and they had moved more than RMB 112 billion across the border. The number of eligible investment funds available to mainland investors through the scheme grew from around 160 at the end of 2023 to 358 by March 2025.

The impact on Hong Kong’s banking and investment industry has been dramatic. Between 2022 and 2024, investment transaction volumes at retail banks more than doubled, from HKD 819 billion to HKD 1.774 trillion. In private banking, which serves the very wealthy, volumes grew from HKD 2.975 trillion to HKD 4.466 trillion over the same period. Total assets under management in Hong Kong grew by 13% in 2024 to reach HKD 35 trillion.

Private banks expanded their office space by between 35% and 50% to handle the surge. By mid-2025, a streamlined onboarding process for wealthy clients at seven private banks had already processed transactions exceeding HKD 70 billion, with 13 more banks preparing to join the system.

Inviting the Ultra-Wealthy Home

Managing money is one thing. Getting the people who own it to move there is another. Hong Kong has been pursuing both strategies simultaneously. Paul Chan, the Financial Secretary of the Hong Kong Special Administrative Region, described the underlying logic plainly, “Leveraging the advantages of ‘one country, two systems’, complemented by free, open, transparent, and predictable economic policies as well as a stable and secure investment environment, and cross-market connectivity, Hong Kong is attracting more and more ultra-high-net-worth individuals and family offices.”

In March 2024, the government launched the New Capital Investment Entrant Scheme, a residency programme that allows wealthy foreigners to obtain the right to live in Hong Kong in exchange for a minimum investment of HKD 30 million, roughly USD 3.85 million. Of that amount, HKD 27 million must go into approved financial assets or real estate, and HKD 3 million must be placed into a government-run strategic investment fund that deploys capital into local technology, artificial intelligence, biotechnology, and sustainable industries.

By the end of February 2026, the scheme had received 3,166 applications and was on track to bring in approximately HKD 95 billion in new capital. Of those applicants who have completed their investments and received approval, most put their money into mutual funds and listed equities. The tax incentives driving these decisions are significant. Hong Kong levies no capital gains tax, no inheritance tax, no wealth tax, and no value-added tax. Income tax on locally earned salaries tops out at 17%, which is extremely low by international standards.

These conditions have made Hong Kong a magnet for family offices, which are private companies set up by very wealthy families to manage their investments and financial affairs across generations. By the end of 2025, there were over 3,380 single family offices operating in Hong Kong, a 25% increase in just two years. The government had set a target of facilitating 200 new family offices and hit it ahead of schedule, with a new target of 220 additional offices set for 2026.

The Succession Reckoning

Underlying the family office boom is a generational pressure that rarely makes headlines but is reshaping the entire wealth management industry. Decades of rapid wealth creation across East and Southeast Asia have produced a high concentration of first-generation fortunes. In Singapore, Malaysia, and Indonesia, between 40% and 50% of major family enterprises are still run by their founders, with the median age of leadership above 70. These families are now confronting what happens next.

Michael Kahlich, Managing Director and Partner at Boston Consulting Group, framed the scale of the challenge in the 2026 Global Wealth Report, “Families are increasingly confronting succession as a design challenge rather than a single transfer event. The firms that can help clients navigate governance, inter-generational alignment, and long-term wealth structures will define the next era of wealth management in Asia.”

The complexity is real. Modern family fortunes span multiple asset classes and multiple jurisdictions. Younger family members are often dispersed globally, pursuing careers outside the founding business, and may have very different views on what to do with inherited wealth. Many prefer venture capital or sustainable investments over running a traditional manufacturing operation. Equal distribution among heirs can fragment ownership and dilute control. The wealth managers and private banks best positioned to win in Hong Kong are no longer simply those offering access to products, but those capable of designing governance frameworks that can hold a family’s financial interests together across borders and generations.

The Stock Market Revival

If the wealth management business is one engine of Hong Kong’s comeback, its stock exchange is the other. In 2025, Hong Kong reclaimed its position as the world’s top initial public offering, or IPO, venue.

An IPO is when a private company sells shares to the public for the first time, raising capital in the process. Hong Kong raised USD 37.4 billion across 119 listings in 2025, a 231% increase on the year before, exceeding the combined total of the previous three years.

The momentum continued into early 2026, with 40 companies completing IPOs in the first quarter alone, raising the equivalent of around USD 13.3 billion, a 489% year-on-year increase and the strongest quarterly performance in five years.

BCG’s Michael Kahlich observed that the physical aggregation of capital and companies is now forcing even European institutions to relocate: “What ultimately matters is client proximity. Two major wealth-management clusters are emerging globally. Singapore and Hong Kong serving Asia, and Switzerland, the UK, and the US serving Western markets. Swiss banks have responded by expanding operations heavily in major Asian hubs.”

The dominant story driving Hong Kong’s IPO revival is China’s artificial intelligence boom. While technology listings in the United States have struggled, with companies going public at high valuations and then performing poorly, Chinese AI and technology companies have found Hong Kong to be a more receptive and practical venue.

More than 85% of Chinese AI-related companies that went public through early 2026 chose Hong Kong. This is partly because of a specialised regulatory framework called Chapter 18C, which allows innovative technology companies in areas like AI, semiconductors, autonomous vehicles, and robotics to list even if they have not yet generated significant revenue. The bet is on future potential rather than current profitability.

Leading Chinese AI companies that listed have seen post-listing share price gains exceeding 400%. More than 500 companies are now waiting to list, most of them mainland Chinese firms specialising in advanced manufacturing and technology.

Not Everything is Booming

For all the financial energy flowing through its banking towers, Hong Kong’s recovery is uneven on the street level.

Tourist numbers are healthy. Visitor arrivals rose 12% in 2025 to nearly 50 million people, with mainland Chinese visitors accounting for roughly three-quarters of the total. But tourist spending is another story. Total international visitor spending in 2025 remained 15% below the level seen in 2018, before the social unrest and pandemic that scarred the city’s reputation. In contrast, regional rivals Singapore and Macao have both exceeded their pre-pandemic spending levels.

Modern mainland tourists tend to be savvy, cost-conscious travellers who use their phones to compare prices and seek out cultural experiences rather than splashing out on designer goods. Hong Kong’s currency, pegged to the US dollar, makes it expensive relative to other regional destinations. Broad retail sales fell by 5.5% in the first five months of 2025, and hotel room rates have softened despite near-full occupancy.

The government has responded with investment, earmarking HKD 1.6 billion for tourism in its 2026-27 budget, and launching promotional campaigns in new markets including India, Southeast Asia, and the Middle East. Luxury goods showed some resilience, with jewellery and watch sales jumping 20% in April 2026, but the broader consumer economy remains two-speed.

The Shadow Over the Success Story

The most difficult question hanging over Hong Kong’s financial renaissance is whether the institutional framework that makes it valuable can survive the political pressures bearing down on it.

Hong Kong’s unique appeal has always rested on a single foundation: ‘one country, two systems’, the arrangement under which it operates a common legal system, free capital flows, and independent courts, even as it is politically a part of China. International investors, wealthy families, and global banks trust Hong Kong precisely because it offers Chinese proximity combined with Western legal protections. That combination is increasingly under strain.

The enactment of Article 23, a sweeping national security law, in March 2024, followed by updated implementing rules in March 2026, has substantially expanded the legal risks of operating in Hong Kong. The law defines state secrets very broadly, potentially covering information about economic conditions, government policy decisions, and technological developments.

For financial firms, this creates practical uncertainty. Routine business activities, such as conducting due diligence on a Chinese company, auditing assets, or analysing markets, could potentially be characterised as illegal intelligence collection if they touch on sensitive topics.

Foreign consulting and investigation firms have already faced enforcement actions on the mainland under similar laws. A Q2 2026 geopolitical risk assessment captured the essential tension: “The question for the rest of the decade is whether the territory can manage what analysts are calling its security paradox. Can Hong Kong continue to present itself as a globally trusted, transparent financial centre while operating under a tightening legal and political environment.”

Political life has also narrowed. The Democratic Party, Hong Kong’s oldest pro-democracy political organisation, dissolved in late 2025 following financial difficulties and warnings from security authorities.

Where Does This Leave Global Wealth?

Switzerland is not finished. Its greatest strategic advantage is diversity. It draws clients from many different continents and continues to attract money from volatile regions like the Middle East whenever geopolitical tensions flare. It is nobody’s sole focus, which makes it resilient. The United Arab Emirates is also advancing rapidly, recording 11.1% growth in cross-border wealth in 2025 to reach USD 721 billion, as it positions itself as a bridge for wealth owners who want to move assets out of traditional Western centres without losing access to global markets.

But for now, the top spot belongs to Hong Kong. Its GDP grew by 5.9% in the first quarter of 2026, the 13th consecutive quarter of expansion and the strongest rate in nearly five years. The financial machinery is functioning at peak capacity. If the territory can preserve its common law framework and operational transparency while continuing to deepen its integration with the Greater Bay Area, its position at the top of global wealth management looks durable. If the two impulses pull too far apart and international capital begins to feel the friction, the current moment could look, in hindsight, like a high-water mark.

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“We really would like them to ⁠have capital requirements that finance fully, especially the subsidiaries in the United States,” she said about UBS, which became Switzerland’s sole global bank when it acquired fallen rival Credit ‌Suisse ⁠in 2023.

“Switzerland’s financial center has to be a stable location in the long run, and being ⁠well-capitalized can be an advantage for banks. Maybe it’s not Indiana Jones. But I think it is reliable and stable,” Keller-Sutter remarked at a recent banking ⁠event in Zurich.

The capital rules have become a major bone of contention between the government and the Swiss banking biggie, with draft legislation submitted to parliament in April that wants to introduce “tougher regulations” to prevent a repeat of the Credit Suisse meltdown. The lawmakers want UBS to fully back its foreign units with Common Equity Tier 1 (CET1) capital.

However, as per the reports, the draft rules have gone through changes, with the latest proposals making it mandatory for UBS, which successfully absorbed its domestic rival Credit Suisse in 2023 through a government-choreographed merger, to back its foreign subsidiaries with around 70% or 80% of CET1 capital instead of the previous requirement of 100%.

Swiss lawmakers earlier floated a separate concession pitch that required at least 50% CET1 backing. The proposal went at the hearing table in May 2026, as top government officials and UBS executives jointly faced parliamentarians in a heated meeting in Bern.

While Switzerland’s efforts to impose tougher capital requirements have weighed on UBS’s share price, it caused friction between Keller-Sutter and the banking biggie, pitting conflicting concerns like Switzerland’s financial stability and the venture’s competitiveness against each other.

In April, during her interaction with the Blick editorial team, Keller-Sutter panned UBS’ lobbying efforts, calling them “unprecedented.”

“You can have differing opinions. However, it is not common practice to challenge our institutions so forcefully. This is a rather new style in how a company interacts with the state. I have seen very intense referendum campaigns in the past, but the behavior of a private actor lobbying with this level of intensity is new,” she said.

The European country’s government estimates its policy roadmap would require UBS ‌to raise ⁠about USD 20 billion in additional CET1 capital. An 80% CET1 backing requirement, however, would reduce the figure to roughly USD 15 billion, analysts told Reuters, citing that a 50% CET1 demand could allow UBS to keep operating at current core capital levels.

“To support UBS’s competitiveness, some lawmakers hope to rely partly on less expensive Additional Tier 1 ⁠capital alongside CET1. The government sees AT1 as riskier. The proposals now under consideration in parliament envisage varying levels of AT1 entering the mix,” reported Reuters.

Lawmakers could also seek to link a fee UBS must pay for a planned public liquidity backstop—a cash safety net for big banks—to its capital requirements. The upper house committee, currently in charge of the banking bill, is seen as sympathetic to UBS’ argument that costly regulation will hurt its business and the economy. However, another section of lawmakers still wants to see stricter regulation for the ⁠bank when the legislation moves to parliament for voting later in 2026.

As per the sources, a compromise between 50% and 100% CET1 backing of UBS’s foreign units could, therefore, emerge from the committee as lawmakers pursue a proposal robust enough to pass a floor vote. However, on June 24, UBS’ CEO, Sergio Ermotti, said Swiss lawmakers will consider competitiveness along with financial stability while drafting new capital rules for ‌big banks.

“The political process and the parliament will focus with cool heads and fewer emotions around what needs to be ⁠done to achieve financial stability but also competitiveness,” Ermotti said, adding that competitiveness was vital for job creation.

“Without competitiveness, we will not maintain Switzerland as a global and vibrant financial center in the world,” he added further.

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“Draft legislation submitted to parliament in April aims to introduce tougher rules to prevent a repeat of the Credit Suisse meltdown by requiring UBS to fully back its foreign units with Common Equity Tier 1 (CET1) capital,” reported Reuters.

Under new proposals, UBS, which successfully absorbed its domestic rival Credit Suisse in 2023 through a government-choreographed merger, would ⁠need to back its foreign subsidiaries with around 70% or 80% of CET1 capital instead of the government’s requirement of 100%.

Swiss lawmakers earlier floated a separate concession pitch that required at least 50% CET1 backing. The proposal went at the hearing table in May 2026, as top government officials and UBS executives jointly faced parliamentarians in a heated meeting in Bern.

Switzerland’s efforts to impose tougher capital requirements have weighed on UBS’s share price, causing friction between Finance Minister Karin Keller-Sutter and the banking biggie, pitting conflicting concerns like Switzerland’s financial stability and the venture’s competitiveness against each other.

In April, during her interaction with the Blick editorial team, Keller-Sutter panned UBS’ lobbying efforts, calling them “unprecedented.”

“You can have differing opinions. However, it is not common practice to challenge our institutions so forcefully. This is a rather new style in how a company interacts with the state. I have seen very intense referendum campaigns in the past, but the behaviour of a private actor lobbying with this level of intensity is new,” she said.

The European country’s government estimates its policy roadmap would require UBS ‌to raise ⁠about USD 20 billion in additional CET1 capital. An 80% CET1 backing requirement, however, would reduce the figure to roughly USD 15 billion, analysts told Reuters, citing that a 50% CET1 demand could allow UBS to keep operating at current core capital levels.

“To support UBS’s competitiveness, some lawmakers hope to rely partly on less expensive Additional Tier 1 ⁠capital alongside CET1. The government sees AT1 as riskier. The proposals now under consideration in parliament envisage varying levels of AT1 entering the mix,” the media house stated further.

Lawmakers could also seek to link a fee UBS must pay for a planned public liquidity backstop—a cash safety net for big banks—to its capital requirements. The upper house committee, currently in charge of the banking bill, is seen as sympathetic to UBS’ argument that costly regulation will hurt its business and the economy. However, another section of lawmakers still wants to see stricter regulation for the ⁠bank when the legislation moves to parliament for voting later in 2026.

As per the sources, a compromise between 50% and 100% CET1 backing of UBS’s foreign units could, therefore, emerge from the committee as lawmakers pursue a proposal robust enough to pass a floor vote.

The post Switzerland may go soft on capital requirements for UBS, says report appeared first on International Finance.

With clients in wealth management, banking, and insurance, the venture’s technology enables banks and wealth managers to rapidly design and launch wealth propositions that boost advisor productivity, orchestrate investment propositions, and provide consistent client experiences at scale.

“With an extensive global client base in the wealth space, Temenos will benefit from Additiv’s native mass-affluent capabilities and AI-enabled orchestration layer. The company’s fast, low-risk implementation model offers deployments in as little as 3-6 months compared to the industry standard of 12 months. With a high Net Promoter Score (NPS) above 90, Net Revenue Retention (NRR) of 138%, and double-digit growth over the past three years, Additiv will enable Temenos to expand its client footprint within investment services in both developed and emerging markets, as well as provide Temenos’ wealth clients with future-ready, front office workflows,” Temenos commented.

“This acquisition strengthens our wealth proposition at a time when we see strong, growing demand for our products across tiers and geographies in the wealth segment, with financial institutions increasingly focused on launching scalable hybrid wealth models. Additiv’s orchestration capabilities complement our market-leading platform and support our strategy to help clients deliver personalised, regulatory-compliant wealth services efficiently and at scale. Together, Additiv’s AI-powered orchestration capabilities and Temenos’ existing front-end solutions create strong differentiation at the banking experience layer,” said Additiv founder Michael Stemmie.

Temenos, on the other hand, offers a core banking suite, along with modular, composable solutions, to help banks and other financial institutions modernise their operations. Deployable on-premises, via the cloud, or as a SaaS solution, Temenos’ technology empowers financial institutions of all sizes to deliver innovative, AI-enhanced experiences to their customers. Founded in 1993 and based in Switzerland’s Geneva, Temenos, as of June 2026, serves more than 950 core banking and 600 digital banking clients. Thibault de Tersant is Temenos’ chairman, while Takis Spiliopoulos is the venture’s chief executive officer (CEO) and interim chief financial officer (CFO).

Headquartered in Zurich, Switzerland and founded in 1998, additiv offers an API-first, cloud-based financial services orchestration platform that enables financial institutions and brands to launch, automate, and scale financial services from a singular solution. Having institutional clients in domains like wealth management, banking, credit, and insurance, Additiv’s technology allows businesses to expand their own offerings and introduce third-party products and services to their customers without having to replace core systems.

In early 2026, Additiv launched a new dedicated solution to help Germans navigate planned reforms to the country’s pension scheme. The reform calls for a new state-subsidised retirement investment account (Altersvorsorgedepot) that is offered digitally as a simplified, standardised solution, Standarddepot. Millions of legacy pensions (so-called ‘Riester’ contracts) will be migrated to the new pension product, creating new urgency for institutions that seek to attract or simply retain these customers,” the venture noted.

“This reform marks a genuine paradigm shift for German private pensions. For the first time, capital market-based products are sitting at the heart of state-subsidised retirement savings. Institutions that are now establishing scalable digital infrastructure will secure long-term customer relationships—and with millions of Riester contracts up for migration, the window to act is open,” added CEO Nils Frowein.

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As per Boston Consulting Group, Hong Kong’s latest achievement will go unchallenged, as hubs in Asia are quickly emerging as new investment destinations for the HNWIs (High-Net-Worth Individuals), compared to the legacy European safe havens.

“Wealth from China and an IPO boom in 2025 helped Hong Kong rise to a USD 2.95 trillion offshore behemoth for the world’s rich, narrowly surpassing Switzerland’s USD 2.94 trillion in cross-border wealth. Hong Kong is cementing its role as China’s gateway to global markets, though that same concentration ties its trajectory tightly to economic and regulatory developments on the mainland,” stated BCG’s 2026 Global Wealth ⁠Report.

BCG sees both Hong Kong and Singapore consolidating their positions in the rankings of cross-border booking centres through an annual growth ratio of nearly 9% till 2030, compared to an expected 6% average in Switzerland over the same period.

“Cross-border wealth globally grew 8.4% to USD 15.7 trillion in 2025, driven by strong markets and more demand for geographical diversification, and it flowed overwhelmingly to the world’s top 10 booking centres, further boosting concentration,” ‌BCG ⁠added.

“Despite slower growth rates, Switzerland’s diversification may prove an advantage as it draws clients from all regions, while the Asian hubs largely depend on growth in China. Geopolitical uncertainty reaffirms Switzerland’s role as a core global booking centre, attracting flight-to-safety flows from more volatile regions such as the ⁠Middle East,” the report observed.

The BCG report also coincides with a similar scoop from Reuters that, quoting bankers and financial advisers, talked about wealthy individuals looking to shift assets from the Gulf region to Switzerland in the wake of the ongoing Iran war.

“What ultimately matters is client proximity,” ⁠said Michael Kahlich, who co-authored the BCG report, adding that two hubs are forming globally – Singapore and Hong Kong for Asia, and Switzerland, the United Kingdom, and the United States for the Western ⁠region.

“As being close to clients has become more important, Swiss banks have expanded to other major hubs,” Kahlich added. ” UBS (UBSG.S), opens new tab, is number one in wealth management in both Singapore and Hong Kong,” he said.

Talking about Hong Kong’s economic growth, the GDP ‌expanded 5.9% in Q1 2026, while completing the historic feat of achieving the 13th consecutive growth quarter. The Q1 data was also the strongest quarterly rate in nearly five years. Authorities in the Chinese special administrative region now expect the GDP growth to stay between 2.5% and 3.5% for 2026 after 3.5% growth for 2025.

“Looking ahead, Hong Kong’s economic growth outlook remains ⁠positive, underpinned by strong global demand for artificial intelligence-related electronics, sustained growth in visitor arrivals and robust cross-boundary financial activities. However, tensions in the Middle East pose downside risks,” a government spokesman said.

The Q1 2026 GDP growth was also the fastest since Q2 2021, when the economy grew 7.6%. On a seasonally adjusted quarterly basis, the economy expanded 2.9% in January-March, compared with ‌1.0% ⁠growth in October-December.

“The rapid global development of artificial intelligence (AI) has driven strong demand for related products and electronics across the board, which has, to some extent, mitigated the potential impact of geopolitical tensions on local exports and the economy,” Financial Secretary Paul Chan commented, while analysing the numbers.

“Facing a complex and ever-changing ⁠external environment, Hong Kong’s economy is moving forward by enhancing quality and increasing scale,” Chan said, adding that deepening AI applications across sectors and strengthening talent development are among the priorities for the administrative region’s authorities.

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“Jointly with the company Swiss Stablecoin AG, the Swiss banks are launching a secure digital live environment, a so-called sandbox, to explore ways to connect blockchain applications with the Swiss franc,” UBS said.

UBS, PostFinance, Sygnum, Raiffeisen, ZKB and BCV are part of the initiative, and places have been kept open for other participants as well.

“Right now, there is no regulated Swiss franc-pegged stablecoin with broad application in Switzerland. The sandbox will be conducted in 2026 and aims to strengthen the Swiss digital money ecosystem,” UBS added.

Lenders all over the world are seeing stablecoins (cryptocurrency designed to maintain a constant value and backed by traditional currencies) as their potential competitors, thereby putting the industry under pressure to explore and embed the usage of ‌blockchain ⁠technology within their businesses.

While several banks have experimented with stablecoins, a new direction was provided in 2025 when United States President Donald Trump signed a law establishing regulatory guidelines for stablecoins under the GENIUS Act (Guaranteeing Essential National Infrastructure in US-Stablecoins). In December 2024, the European Union’s Markets in Crypto-Assets Regulation (MiCA) came into effect, followed by Hong Kong’s Stablecoin Ordinance.

Switzerland is not the only European country to launch a stablecoin sandbox. Another group of 10 European banks, including ING, UniCredit and BNP ⁠Paribas, in 2025, formed a company to launch a euro-pegged stablecoin in the second half of 2026, to counter Uncle Sam’s dominance in digital payments.

Another separate consortium of 10 banks, including Bank of America, Deutsche Bank, Goldman Sachs and UBS, is exploring issuing a stablecoin. While the particular cryptocurrency has witnessed a sharp usage spike in recent years, the market is still dominated by the El Salvador-based company Tether, and demand for the few bank-issued stablecoins has so far been limited.

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The developer has a land bank of 2.3 million square metres across Saadiyat Island (plots will house large-format villas and mansions) and Yas Island, according to a statement to the Abu Dhabi Securities Exchange (ADX).

The Yas Island plots, on the other hand, will be allocated to large-scale, master-planned family living communities supported by established retail, entertainment and lifestyle infrastructure, and the projects will be launched in a phased manner from 2026, in line with market demand, by a joint venture with an established partner to activate the land plots.

In an investor presentation in November 2025, Aldar Properties announced that its land bank in Abu Dhabi consists of a gross floor area (GFA) totalling 7.8 million square metres and a total land bank of 59.9 million square metres. The company’s revenue backlog in the UAE stands at AED 57.3 billion, with approximately AED 36–37 billion generated from Abu Dhabi.

The presentation also highlighted two major residential master plans in Abu Dhabi: Fahid Island, which has a gross development value (GDV) of AED 40 billion (approximately USD 11 billion), and a strategic development on Saadiyat Island, in joint venture with Mubadala, with a GDV of about USD 1.1 billion.

The news of Aldar Properties expanding its housing portfolio also comes at a good time, as Skyscanner’s “Travel Trends Report” sees the UAE likely emerging as one of the most popular destinations for international travellers in 2026, with Dubai, Abu Dhabi, and Sharjah being the most desired destinations.

The increase will be primarily due to holidaymakers seeking hotel experiences, and Dubai is leading the way in advance hotel bookings with a 89.7% increase in bookings over 2024.

“Germany, Switzerland, Canada, and South Korea are looking for destinations with comfort, culture, and unique experiences, and Sharjah has seen 101% more searches from German tourists attracted by its heritage sites and beaches, as well as low-cost flights, while Switzerland has seen a 99% increase in searches,” the report stated.

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Among them are the six grandchildren of the late business tycoon Goh Cheng Liang, founder of Wuthelam Holdings, which manufactures paint and coatings. Liang died in Singapore in August, aged 98. Each grandchild inherited stakes in a public company worth more than USD 1 billion. On the other hand, 196 “self-made” business leaders became billionaires this year, with a collective wealth of USD 386.5 billion, UBS said.

“These heirs are proof of a multi-year wealth transfer that’s intensifying,” UBS executive Benjamin Cavalli told Reuters.

The study was conducted on the basis of UBS’ tally of super-rich clients and a database that tracks the wealth of billionaires across 47 markets across the world.

As per the bank’s calculations, at least USD 5.9 trillion will be inherited by billionaire children over the next 15 years. Most of this inheritance growth will take place in the United States, with India, France, Germany, and Switzerland next on the list.

“However, billionaires are highly mobile, especially younger ones, which could change that picture. The search for a better quality of life, geopolitical concerns, and tax considerations are driving decisions to relocate,” the UBS study added.

In Switzerland, where USD 206 billion will be inherited over the next 15 years according to the bank, voters recently overwhelmingly rejected a proposed 50% tax on inherited fortunes of USD 62 million or more, with critics predicting that the move could trigger an exodus of wealthy people. Not only Switzerland, but Europe in general is facing calls to introduce a wealth tax on the international elite. However, voices against such policy moves are making their points loud and clear as well.

“Switzerland, the UAE, the United States, and Singapore are among the billionaires’ preferred destinations,” UBS’s Cavalli noted.

In October 2025, the French parliament voted against a proposed 2% tax on fortunes over 100 million euros. Italy, which has attracted many wealthy residents thanks to its flat-tax regime for foreign income, has set out plans to increase the levy by 50% to 300,000 euros a year from 2026.

The United Kingdom, which distanced itself from reports of implementing a formal wealth tax, officially ended non-domicile status in 2025. Under the previous arrangement, British residents who declared their permanent home as overseas could avoid paying tax on foreign income and gains. The Keir Starmer government has also announced plans for a council tax surcharge, labelled a “mansion tax,” on homes worth more than 2 million, as Chancellor Rachel Reeves introduced her second budget in November.

In 2024, Spain, Brazil, Germany, and South Africa signed a motion at the G20 for a minimum 2% tax on the super-rich to reduce inequality and raise public funds. As per a study by the leading French economist Gabriel Zucman, the move could net up to USD 250 billion in extra revenue.

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Additionally, he had important meetings with Volvo Group and Yara Clean Ammonia to talk about possible collaborations.

The economic agreement improves bilateral ties, especially in trade, investment, and economic growth, signed by Switzerland’s State Secretary for Economic Affairs Helene Budliger Artieda and Egypt’s Minister of Planning and Economic Development and International Cooperation Rania Al-Mashat.

“The signing of the Joint Economic Committee agreement strengthens bilateral relations between Egypt and Switzerland in various fields, particularly trade, investment, and economic development,” Mostafa Madbouly stated.

He underlined that the agreement is a major turning point in Egyptian-Swiss collaboration and a bold move toward deepening economic ties in keeping with both nations’ goals of sustainable development in several areas.

The agreement creates a Joint Economic Committee to support investments, encourage bilateral trade, uncover market opportunities, ease information sharing, and remove trade obstacles.

In addition, the committee will encourage the sharing of expertise and examine current economic accords. According to Minister Al-Mashat, the current bilateral cooperation portfolio consists of USD 71.6 million in grants that support nine projects in the public, private, non-profit, and government sectors.

Yara Clean Ammonia CEO Hans Olav Raen met with Mostafa Madbouly, who commended the continued collaboration in green hydrogen. Considering Egypt’s emphasis on expanding its renewable energy capacity for the production of green hydrogen, he stated his desire to deepen cooperative efforts.

Additionally, he emphasised Egypt’s intention to raise the proportion of renewable energy sources in the mix.

Drawing attention to President El-Sisi’s recent visit to Norway and the following agreements, Raen reaffirmed Yara’s dedication to a long-term partnership.

He said that he would like to travel to Egypt to talk about extending collaboration in the production of green hydrogen and ammonia. Representatives from Yara also indicated interest in working together on producing fertiliser and urea.

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