Private Client Trends in the Middle East: Domestic Structuring, Environmental, Social, and Governance Policies and Emergence of Family Offices

Middle Eastern private client industry is rapidly evolving, showing an increased interest in domestic structuring, ESG/impact investing and family offices. These trends reflect a generational shift in the region as younger individuals recognize the significance of financial security and family governance.

One striking trend in the Middle East is the explosion in domestic structuring. International structuring at offshore finance centres was long the norm; local structuring only recently caught on. A prime example is the recent rapid expansion of DIFC, ADGM and RAK ICC Foundations Regimes which have registered over 550 foundations as of September 2022. These UAE foundations provide unique asset protection features including holding UAE real estate as private wealth vehicles while also functioning as orphan structures allowing asset transfers out of own names, which enables protection and intergenerational planning of assets between generations.

Another notable trend in the Middle East is an increasing interest in impact investing and ESG, particularly among younger family members. This shift is forcing families to reevaluate traditional investment strategies in light of an ever-evolving landscape and adapt accordingly; similarly, their focus on ESG and sustainability influences not only what types of investments they pursue but also their wealth management structures.

Family offices in the Middle East are continually growing more diverse, serving a range of purposes beyond investments. Where once family offices were used primarily as investment vehicles, today they’re being utilized for wealth protection, succession planning, intergenerational planning and governance – reflecting both professionalisation needs within family offices as well as increased demand for services that support such complex structures.

Middle Eastern private client industry presents numerous opportunities, as evidenced by domestic structuring’s increased popularity, impact investing and ESG investing’s increased prominence, and family offices emerging throughout the region. However, as this market develops, it’s essential that families and high-net-worth individuals work alongside experienced advisors to navigate all of the complexities of wealth management.

Families and high-net-worth individuals should enlist the services of an established private client family advisory in Dubai like IMC Group for tailored, expert advice and support. With an understanding of both the region and wealth management complexities, they can help clients take full advantage of all that the Middle East private client market has to offer.

As the Middle Eastern private client industry is continuously developing, it is crucial for families and high-net-worth individuals to remain up-to-date with its trends, working alongside knowledgeable advisors who can navigate its complexities effectively. Domestic structuring, impact investing and ESG strategies as well as family offices present plenty of investment opportunities in this region.