Fleeing the Middle Eastern wars, Gulf tycoons and capital are pouring into the Swiss town of Zug.

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The escalating tensions in the Middle East are reshaping the asset allocation and residential map of the global high-net-worth population.

According to the Financial Times, following the outbreak of conflict in the Middle East, a large number of wealthy individuals, family offices, and businesses based in Dubai have begun to focus on Switzerland, seeking stable European footholds. Among them, groups mainly composed of commodity traders and financial professionals are especially attracted to Zug, Switzerland.

Heinz Tännler, Finance Director of Zug, stated that the volume of inquiries has noticeably increased since the outbreak of war. "We regret the situation, but the reality is that Zug is benefiting from it." Wealth management institutions and private bankers also confirm that the demand from Dubai clients to relocate is rapidly rising.

Demand for Zug surges: long queues for house viewings, Dubai clients arriving the same day

Pierre Gabris, founder and CEO of Swiss wealth management firm Alpen Partners, said that the company has assisted multiple clients in relocating from the Middle East, “almost every client’s first request is Zug”. He added that, in light of the rapid growth in market demand, Alpen Partners is considering opening an office in Zug.

A Swiss private banker with an office in Zug described a scene last weekend: he attended an open house for a two-bedroom rental apartment, “the queue extended to the corner—the person behind me had just flown in from Dubai that morning.”

Zug is a small Swiss canton with a population of only about 135,000, long known for its concentration of commodity traders and cryptocurrency companies. For traders and entrepreneurs familiar with Switzerland’s global stature in the commodity market, the Zug brand has long been deeply ingrained.

Gap between attraction and capacity: Relocating to Zug is not easy

However, there is a significant gap between Zug's appeal and its actual capacity to accommodate newcomers. The canton lies just south of Zurich and rental housing is extremely scarce, often snapped up within days, with fierce competition.

Anja Beck, managing partner at Engel & Völkers Zug office, pointed out that even with an EU passport, moving is not easy. “You can’t just show up—it takes time. You need an employment contract or to register a company.”

For non-EU nationals, the threshold is even higher. Residency permits are usually tied to employment or company registration, or may require special negotiations with the cantonal tax authorities for a lump-sum taxation arrangement. This arrangement allows individuals to pay a fixed annual tax based on living expenses, rather than global income, but it requires prior approval and there is no guarantee of successfully settling in areas with the highest demand.

Lugano absorbs spillover demand and becomes an emerging alternative

As housing supply in Zug becomes increasingly tight, other Swiss cantons that offer flexible tax arrangements are benefiting from the spillover demand. Lugano, the capital of Ticino in Switzerland’s Italian-speaking south, is becoming an important alternative destination.

Simon Incir, broker at Engel & Völkers Lugano, said that since the outbreak of war, inquiries from expatriates in Dubai have risen significantly, covering groups such as Italians, French, Swiss, and British nationals. “They are considering leaving Dubai.”

Compared to Zug, Lugano currently still has ample housing supply. “We have more available properties, about 300 on the market,” Incir said, and foreign residents can relatively quickly negotiate lump-sum tax agreements and obtain residency permits. He expects this is just the beginning of the influx of demand: “People are asking questions, arranging viewings, and we expect even more to come.”

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