A paradigm shift in wealth management of the next generation in the Middle East
The Middle East is experiencing an unprecedented generational wealth transfer as family-owned businesses, investments, and fortunes transition to younger, tech-savvy heirs. This shift presents significant opportunities and challenges for wealth management professionals. At a global level, this 'Great Wealth Transfer' is projected to shift $18.3 trillion of collective wealth to younger generations by 2030. As traditional values intertwine with modern financial strategies, next-generation wealth holders demand a fresh approach to portfolio construction, planning, and governance.
More specifically, the Gulf Cooperation Council (GCC) region is home to some of the world's wealthiest families. Nearly 70 per cent of private wealth is tied to family businesses and about $1 trillion in assets expected to pass to the next generation by 2030, the scale of the wealth transfer is extraordinary.
This transfer is not merely about financial assets; it is also about legacy and responsibility. Heirs are increasingly aware of the need to adapt to a globalised economy, navigate geopolitical challenges, and prioritise sustainability. These factors necessitate a shift in how wealth is preserved and grown.
The new generation of wealth holders in the Middle East is often more educated, globally connected, and digitally adept than their predecessors. They seek a departure from traditional investment approaches, emphasising innovation, diversification, and purpose-driven strategies. Wealth management firms must align with these evolving preferences to remain relevant.
Governance and succession planning
While family businesses represent the backbone of private wealth in the Middle East some still lack formal governance structures. Without proper planning, succession disputes can erode wealth and damage relationships. To address this, families are increasingly turning to family charters – outlining roles, responsibilities, and decision-making processes for heirs and independent advisors – leveraging the advice of third-party experts to mediate and ensure a smooth transition. Fostering open communication and educating heirs about financial stewardship is equally critical.
Portfolio diversification and innovation
Historically, Middle Eastern portfolios heavily relied on regional real estate, oil and gas ventures, and equities. While these asset classes remain significant, next-generation investors are diversifying into other asset classes. Over the last few years we have seen an increased focus towards thematic investments such as global equities, crypto, technology startups, green energy projects, and alternative assets such as private equity and hedge funds.
This diversification reflects a more sophisticated risk-return strategy, as these younger investors aim to balance traditional wealth preservation with growth opportunities. Beyond the financial benefits, they are also contributing to creating a positive social impact.
Personalisation and digital integration
Next-generation clients are seeking more personalised services and seamless digital experiences that allow them to engage with their finances on the terms that best suit their needs - tech-driven solutions can provide this. Wealth managers have started to adopt cutting-edge fintech solutions for portfolio monitoring, reporting, and advisory. Artificial intelligence and big data analytics can help tailor strategies to individual preferences and market trends, enhancing client satisfaction and engagement. However, these changes have also created a certain number of shifts in the engagements between wealth manager and client. Recognising that understanding a client's investment goals and values are crucial to delivering personalised advice, wealth managers' interactions, which were once purely transactional, are becoming more grounded in relationship-building.
Philanthropy and legacy building
The Middle East is increasingly active in philanthropy. The UAE ranked ninth place in the CAF World Giving Index 2024; and annual giving across the GCC surpassed $200 billion in 2022. Reflecting a global trend, younger philanthropists in the region, particularly millennials and Gen Z, are shifting away from traditional charity to embrace strategic, meaningful hands-on approaches aimed at systemic change. A report titled 'Grounded in Tradition, Looking to the Future: Understanding Next-Generation Philanthropy in the Middle East' published by the Pearl Initiative, a non-profit organisation, revealed that over 45 per cent of respondents said they were looking to embrace non-tradition philanthropic models including impact investing, micro lending and donor advised funds. This correlates with the younger generation increasingly looking at solutions that address the root causes of many issues and, in doing so, taking more of a holistic approach to philanthropy.
Conclusion
The next-generation wealth transfer in the Middle East is more than a financial transition; it is a shift in mindset and priorities. As the younger heirs redefine the region's approach to wealth, emphasising global diversification, sustainability, and technological innovation, striking a balance between respecting cultural traditions and innovating remains crucial. Wealth management professionals must recognise these dual motivations and support the next generation in their quest to navigate them effectively. This is precisely where the strengths of private banks in the region lie — blending centuries-old traditions with modernity and agility to deliver a seamless and exceptional customer experience. By addressing the unique needs of this emerging class of investors, financial institutions can secure their role as indispensable allies in shaping a resilient and impactful future for Middle Eastern wealth.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
an hour ago
- Khaleej Times
Iran-Israel war: UAE overflights stable, Saudi doubles after conflict
[Editor's Note: Follow our live blog for real-time updates on the latest developments in the Israel-Iran conflict.] The UAE's air traffic has stayed normal since the outbreak of war between Israel and Iran on June 13, but Saudi air traffic has more than doubled. 'With the closure of Iranian and Iraqi airspace since June 13, flights that normally pass through either of those countries need new routes. As a consequence, overflights of Saudi Arabia have doubled over the past week while the number of flights over Afghanistan has increased by nearly 500 per cent. Overflights — aircraft not departing or landing in a given country — have risen above Saudi Arabia from an average of 700 flights per day in mid-May to 1,400 flights per day since the closure of Iranian and Iraqi airspace on 13 June,' according to Flightradar24. In a statement to Khaleej Times, the Sweden-based real-time aircraft flight-taking firm said it 'measured no appreciable difference in air traffic to, from, or through the UAE since most recent hostilities began last week". Many UAE and other Gulf carriers have also re-routed and cancelled their flights to different destinations due to the regional war. 'It should come as no surprise that the two airlines most affected by the closure of airspace in Iran and Iraq are the two largest airlines in the Middle East. A vast majority of Qatar's flights to Europe and North America usually pass over Iraq, while Emirates maintains a more equal distribution between Iraq and Iran. Flydubai's loss of access to Iranian airspace has increased flight times for the airline as it must now route further east through Pakistan and Afghanistan to reach destinations north of Dubai. For example, the airline's flights from Dubai to Moscow increased from about five hours to nearly seven,' said Flightradar24. It added that there have been changes to how aircraft enter the airspace — an increase in flights transiting via Saudi Arabia — but overall the number of flights has remained consistent. 'For comparison, the number of flights in UAE airspace averaged 2,838 per day, while this week the number is 2,725 flights per day.' Overflights of Afghanistan have risen from an average of 50 per day in May to 280 per day since June 13.' Even before the recent closure of Iran and Iraq air space, airlines have had limited options to fly between Europe, the Middle East, and Asia. 'The great circle route (or shortest path on the globe) between Europe and Asia generally routes through either Ukraine or Russia, airspace that is currently unavailable to all airlines. This has squeezed most traffic into limited space over the Black Sea to the north and through Saudia Arabia to the south. Should the conflict between Iran and Israel expand and additional air routes close, the effects on commercial aviation could be profound.' Rising cost for Gulf carriers According to Flightradar24, Emirates — the biggest international carrier — operated highest number of weekly flights during May 11-17 at 1,354, followed by Qatar Airways (1,225), flydubai (841), Turkish Airlines (584), Etihad Airways (542), Air Arabia (395), Air India (331), Singapore Airlines (255), British Airways (212), PIA (197), Kuwait Airways (191), Wizz Air Abu Dhabi (156), Lufthansa (145), Gulf Air (137) and Pegasus (105). Saj Ahmad, chief analyst at London-based StrategicAero Research, at the moment, most European flights are transiting westwards through Saudi and Egyptian airspace rather than the more direct Iraq-Iran airspace, while US-bound flights are tracking more eastwards through Pakistan before heading towards the North Pole before reaching points like Seattle and Los Angeles. 'Flight times are slightly increased but this will depend on a multitude of factors including airplane type, weather, winds, payload, cargo and the number of passengers on board.' He added that the war could have resulted in higher fuel costs for the airlines as they take longer routes to their destinations amidst closed air space of Iran, Iraq, Jordan, Syria and Israel. 'With oil prices rising too, it's not entirely out of the realm that fuel surcharges kick in and we see hike fares — and again, that has the propensity to hit demand,' he said. While oil prices have broadly stabilised in this first week of war, over the last month, it's already shot up from $60 a barrel to $74 a barrel. 'If the war drags on, it will then hit a $100 a barrel and will definitely hit airfares.'
Zawya
an hour ago
- Zawya
Richmax begins international journey with Dubai debut
Dubai: Richmax Group has announced the official launch of its Travel & Tourism Division in Dubai, marking the company's foray into the Gulf market and signaling the beginning of its international expansion strategy. Operations are set to commence in July 2024, positioning Dubai as the gateway for Richmax's broader GCC ambitions. "This strategic move comes after a comprehensive market evaluation across the UAE and other Gulf nations," said Adv. George John Valath, Chairman of Richmax Group. 'It is the first step in a long-term global vision.' Founded in 2020 amidst the pandemic, Richmax Finvest, the group's flagship financial services arm, has grown rapidly from its roots in Kalamassery, Kerala, expanding across South India, Odisha, Delhi, and West Bengal. The group now aims to establish 1,000 branches by 2030 and transition into a Small Finance Bank by 2040, reflecting its long-term growth ambitions. Launched in 2024, Richmax Tours & Travels has quickly gained traction with its curated international travel packages and growing customer base. After opening its second branch in Aluva in 2025, the company is now ready to go global with its Dubai outlet. As part of its expansion roadmap, Richmax plans to establish a presence in all Emirates of the UAE by the end of 2027, and across all GCC countries by 2030. Another key vertical, Valath Jewellers, also continues its upward growth under the Richmax umbrella. With established showrooms in Kalamassery, Aluva Road, and Kanjur, the brand is expanding further into Central Kerala and Tamil Nadu. A Dubai showroom is also in the pipeline, as part of a wider goal to make Valath Jewellers a publicly listed company by 2028. Further diversifying its portfolio, Richmax has launched Richmax Marketing & Consultancy, a strategic advisory arm that provides business consulting services to internal and external clients. As part of its strong commitment to community welfare, Richmax Group drives several impactful initiatives under its CSR banner 'Sparsh.' The program focuses on key social priorities such as environmental sustainability, youth empowerment, women's safety, and education. In 2024 alone, the group planted over 1,200 saplings as part of its green initiative. The 'I Stand Against Drugs' campaign reached thousands of students across various regions, promoting awareness and prevention. The 'Bindhiya Mission' advocates for women's safety and empowerment, while the annual 'Vidya Jyothi Awards' celebrate academic excellence by honoring outstanding student achievers. With the UAE launch as a pivotal milestone, Richmax Group is poised to become a significant player across the GCC, driven by innovation, vision, and a strong community-first philosophy. -Ends- About Richmax Group Founded in 2020, Richmax Group is a diversified business conglomerate headquartered in India with interests spanning financial services, travel and tourism, jewelry retail, and strategic consulting. With a vision to become a Small Finance Bank by 2040, the group operates under key verticals such as Richmax Finvest, Richmax Tours & Travels, Valath Jewellers, and Richmax Marketing & Consultancy. Known for its rapid growth and strong community-first philosophy, the group is also committed to impactful CSR initiatives through its 'Sparsh' program. Richmax has now embarked on its international journey, with its UAE operations marking the first step toward a wider GCC and global presence. For media inquiries, please contact: Sajish Gopalan Regional Head – Richmax Group
Web Release
2 hours ago
- Web Release
ONEE and EBRD launch first sustainability-linked loan in Moroccan power system to drive a low-carbon future
The European Bank for Reconstruction and Development (EBRD) and Morocco's Office National de l'Electricité et de l'Eau potable (ONEE) have signed a €300 million loan agreement. ONEE is involved in generation, transmission and renewables. Morocco is strongly committed to the energy transition in order to achieve its objective of having 52 per cent of its installed capacity from renewables by 2030. In this context, ONEE and the country as a whole are taking important steps towards decarbonisation, while maintaining the security and affordability of energy. The loan is structured as a sustainability-linked loan (SLL) – the first one in the MENA and Africa region's energy sector. It provides an example of how energy utilities can link financing with support for the transition to a low-carbon economy. The proceeds will be used to improve the company's financial resilience, helping to alleviate the impact of the energy crisis. The SLL builds on ONEE's increasing climate ambitions via two key performance indicators – namely, reducing the carbon intensity of electricity generated in Morocco and increasing renewable sources' share of the country's total electricity production. The company's Sustainable Performance Targets (SPTs) are in compliance with Morocco's updated Nationally Determined Contribution (NDC) commitments, and a leading independent second-party opinion provider has confirmed the SLL's alignment with the internationally recognised Sustainability-Linked Loan Principles, rating the overall project as 'ambitious'. This verification process was supported by FSD Africa. As part of the loan, ONEE has committed to undertake retirement of some Carbone intensive thermal capacities in the medium term, building on Morocco's enhanced climate ambition of transitioning to a net-zero economy by 2050 as announced at COP28. The EBRD will be supporting ONEE's efforts to (i) prepare a decarbonisation strategy, (ii) improve its climate governance and expand the digitalisation of the company's core activities by establishing a digital roadmap strategy and implementing digital use cases. As part of this decarbonisation effort, ONEE is further strengthening its network and capacity planning to facilitate the renewables to be connected to the grid, as well as continuing to optimise electricity dispatch by taking into account the network's carbon intensity. Morocco is at the forefront of the climate action agenda, and the EBRD has been one of the leading financiers of green technologies in the country for more than a decade now, being particularly active in private-sector financing.' Mark Bowman, the EBRD's Vice President for Policy and Partnerships, said: 'This landmark sustainability-linked loan – the first of its kind in the region's energy sector – demonstrates that innovative finance can drive real impact. The EBRD's support, in close coordination with the Moroccan Government, is helping ONEE to accelerate its decarbonisation and digitalisation journey while strengthening its financial resilience in response to the energy crisis. This reflects our commitment to sustainable growth and long-term impact.' Tarik Hamane, the CEO of ONEE, commented: 'Under the guidance of His Majesty Mohammed VI, Morocco is recognised as having one of the most ambitious strategies in the region for promoting renewable energy and pioneering green technologies. We are proud that ONEE is playing a major role in the integration of renewables into the energy mix with a view to increasing renewables' share to 52 per cent by 2030. The EBRD has been a long-standing and trusted partner in supporting our decarbonisation and energy transition goals. This new partnership marks another important milestone in our joint efforts to build a more sustainable, resilient, and low-carbon power system.' Morocco is a founding member of the EBRD and?became a beneficiary of Bank resources in 2012. To date, the EBRD has invested more than €5.4 billion in the country through 119 projects.
