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Dr. Tim Klatte is a Partner at Grant Thornton China, advising on corporate compliance matters for multi-national corporations. He also serves as an adjunct professor at Shanghai New York University and the Shanghai University of Finance and Economics.
For leaders and investors, the traditional focus on stability is being replaced by resilience. Risk is not just higher — it is also evolving in character. We are seeing many countries shift positions quite a bit on the Global Investment Risk and Resilience Index, moving up or down dozens of places on the ranking based on their ability to manage short-term shocks versus maintaining long-term stability. Investors are paying close attention to these changes, actively reviewing and adjusting their investments and personal jurisdictions to stay protected during these uncertain times.
For many years, the investment narrative was simple: Europe was a safe haven, and Asia was the main growth engine. However, by 2026, this clear distinction has blurred. European countries such as Switzerland, Denmark, and Sweden remain at the top of the Henley index, but their rankings are mostly unchanged. They still lead in wealth preservation but face increasing risks from geopolitical tensions and energy issues arising from the Middle East and Ukraine.
Several emerging markets in Asia are making impressive strides lately, demonstrating strong positive energy. The Philippines and India each have leapt up the ranking, while Thailand also advanced significantly. This upward trend really highlights their growing resilience, especially as Western markets face more challenges due to underlying vulnerabilities to global shocks. These Asian economies are gaining ground because they are less fragile compared to traditional markets. Still, it is important to remember that many of these markets have their own structural weaknesses in various areas. While the overall outlook is optimistic, with strong financial health and market confidence, issues like energy security, governance, and social cohesion remain important concerns — particularly with the uncertain US policy landscape and shifting international alliances.
Now, the idea of ‘Emerging Asia’ has nearly disappeared. We are witnessing an increasing fragmentation of regional risks. For investors today, this means moving from a general investment in the entire continent to specifically pinpointing regions that are decoupling from typical volatility. Furthermore, as India and the Philippines ascend, others in the region have fallen, highlighting its vulnerability to external shocks.
This fragmentation creates a landscape in which financial markets can change rapidly, while underlying structural weaknesses persist. Capital continues to flow into high-performing markets in search of better returns, yet the gap between financially successful markets and those with strong structural resilience is growing wider. For investors, it is evident: adopting a proactive sovereign risk management approach is essential, rather than just following regional trends.
China continues to be a key player in this global shift, presenting distinct challenges for investors now and in the future. As tensions with the USA grow, Beijing has adopted a protective economic approach, focusing on self-reliance rather than solely on GDP growth as an indicator of progress. The Chinese leadership now sees resilience both as a strategic aim and a means of economic diplomacy. With the mid-May summit between US President Trump and Chinese President Xi in Beijing, new themes are likely to emerge that emphasize these strategic priorities.
For investors, China’s central government and strict capital controls can provide a comforting sense of stability during market downturns, helping you navigate turbulent times with confidence. At the same time, it is helpful to be mindful of the long-term sovereign risks associated with this system, which can be challenging to manage. As geopolitical tensions rise and attention turns to critical chokepoints, personal and financial assets may become more vulnerable to unexpected policy changes or sanctions. In China, being resilient means being prepared for the possibility of decoupling from Western financial markets, which encourages you to think carefully about your long-term plans in the region.
The traditional way of thinking about geographic exposure — owning assets in a specific area — is now shifting towards a focus on active resilience. Investors are increasingly trying to reduce their dependence on the ups and downs of any one state by more thoughtfully aligning their personal and financial interests. This change is especially noticeable with the rising importance of sovereign diversification. Wealthy families are reorganizing their lifestyles to include a ‘Plan B’ in stable, resilient regions, adding an extra layer of security.
There has been a surge in demand for alternative residence options and citizenship.
Interestingly, this shift is not only caused by traditionally unstable areas. US applicants now account for the greatest percentage of all investment migration applications, indicating that even people from ‘stable’ countries are diversifying their risks both domestically and geopolitically. A prime example of this ‘new normal’ is the UAE. While enquiries for the UAE program itself dropped by 14%, enquiries from the region — mainly from large expat communities in Dubai and Abu Dhabi — rose by 41%. These individuals are based in the Middle East but are actively exploring residence and citizenship options in more distant, stable regions to mitigate their regional risks.
The lesson from the latest 2026 data shows that the world has become quite fragmented, making it unlikely that stability will simply return on its own. Today, resilience is not just something we hope for — it is something we need to build actively. As the gap between high-performing markets and resilient countries widens, relying solely on traditional diversification strategies may no longer be enough.
For today’s investor, success often means taking a fresh look at where they put their money. It is really helpful to consider jurisdictional hedging — protecting your residency and savings from sovereign risks. Keep an eye on market indicators, such as the CRP, which tend to respond more quickly than traditional economic models. And most importantly, it is smart to have options ready for the next unexpected change. Diversification is not just a financial tactic anymore; it is an essential way to protect your family’s future and keep your capital safe in an increasingly unpredictable world.
Henley & Partners assists international clients in obtaining residence and citizenship under the respective programs. Contact us to arrange an initial private consultation.
