New generations of wealthy families and individuals in the Middle East are embracing impact investing and ESG principles, leading to significant changes in investment outlooks and strategies. However, this rise in sustainable and ethical investing has exposed a ‘generation gap’ between family members – with younger generations much keener to put their assets behind responsible causes. Next-gen family members are eager to transform both their investments and family businesses to align with ESG and sustainability goals. These individuals are demanding more diverse portfolios that include impact investments, crypto currencies and other alternative assets.
Domestic Structuring Attracts New Interest
Traditionally, Middle Eastern high-net-worth families have structured their offshore assets through jurisdictions like Singapore and the Caribbean. However, domestic structuring through UAE foundations is now on the rise. The number of foundations registered in the DIFC, ADGM and RAK ICC has grown dramatically in recent years. UAE foundations offer certain advantages like the ability to hold domestic real estate – making them attractive to next-gen family members focused on asset protection and inheritance planning.
Family Offices Becoming More Professional
Alongside overseeing investments, family offices in the Middle East are increasingly being used for planning succession, governance and philanthropy. Next-gen family members seek to professionalise the family office to manage these complex needs. Advisers are seeing greater demand for family office services from multi-family offices and outsourced family office solutions. These provide expertise in managing family wealth, businesses and estates alongside philanthropic goals.
As family priorities shift and investment strategies evolve, tailored family office and family advisory services can help wealthy individuals navigate the complex challenges that impact their wealth, assets and legacy. Experienced advisers can provide custom structures, governance solutions and expertise – ensuring family values and visions are translated into strategies that bolster financial security for generations to come. The rise of impact investing and other trends show that a new era has dawned on private clients in the Middle East.
Private Client and Family Advisory services can provide invaluable support to high-net-worth individuals and families seeking to navigate complex financial and legacy challenges. IMC Group offers customized solutions tailored to your unique needs and goals, with a focus on long-term financial security and impact investing.
