The “rising generation” in the Middle East's ultra-wealthy families is ready to take on more financial responsibility and bigger risks than their parents, according to a report by Swiss private bank Julius Baer.
In the Middle East, most wealthy families start to involve younger generations in decisions about managing money between the ages of 26 and 35, according to the bank's Family Barometer 2023 report.
Globally, however, the ultra-wealthy wait longer before involving the young in important financial decisions or giving them voting rights in the family business, with 56 per cent of respondents saying families wait until their children are over 35, the report found.
The risk appetite of the rising generation, aged between 18 and 40 years, versus the wealth-holder generation is the highest in the Middle East, according to the research, which polled 1,500 advisers.
“Family businesses are a key driving force behind the Middle East economies as they make a significant impact to the regional ecosystem as job creators, community builders and drivers of growth,” Regis Burger, head of Middle East and Africa at Julius Baer, said.
“Given the vital role they play in society and the fact that more than $1 trillion of assets will move hands in the next decade in the region, wealth and succession planning takes centre stage.
“Developing the next generation to take over while ensuring effective governance can be quite a challenging process to manage.”
Dubai’s family businesses generate more than 40 per cent of the emirate’s gross domestic product, while about 90 per cent of private companies in the country are family-owned, the Ministry of Economy said in 2022.
In the UAE, family businesses operate in a range of sectors including real estate, construction, retail and wholesale trade, hospitality and tourism, manufacturing, financial services, health care, education and technology.
Last August, the Dubai International Financial Centre (DIFC) announced the creation of the Family Wealth Centre, in a push to double the sector’s contribution to the economy by 2030.
The size of the first substantial investment given by wealthy Middle Eastern families to the next generation ranges between $1 million to $2 million, Julius Baer found.
This is similar to Asia, but higher than what wealthy families offer in the Americas and Europe, which averages between $250,000 and $1 million.
“Our survey shows that many families are taking a systematic approach to younger generations, helping to overcome potential pitfalls in the wealth transfer process,” Mr Burger said.
“Wealthy families typically increase the responsibility given to the rising generation gradually, one step at a time: starting with decisions about the management of family wealth and interacting with the family advisers, before moving on to having a say, or voting right, in important family decisions.”
Wealthy families in the Middle East are concerned about geopolitical risks and inflation, the report found.
Another major concern is adapting to the tax and regulatory landscape.
“Wealthy families understand this shift and are actively engaging with experts to organise their wealth and plan family governance,” Mr Burger said.
Family governance also seems to play a key role in the Middle East, as it helps to preserve legacy through generations, the report showed.
Wealthy families typically increase the responsibility given to the rising generation gradually
Regis Burger,
head of Middle East and Africa, Julius Baer
The research also found that wealthy families in the region favour real estate and direct investments compared with other markets.
“Against a backdrop of tightening monetary policy and expanding property yields, real estate investors generally focus on property segments like the residential or logistics market, which offer the potential for rental growth to offset current inflation,” Mr Burger said.
Large wealthy families in the region are also seeking to invest directly into fast-growing young businesses, the research found.
Often, the most popular private direct investments are co-investment opportunities linked to brands or entrepreneurs, typically in the technology sector.
“Though a relatively recent development, we increasingly see families in the region, especially in the UAE, use local trusts and foundations to support the next generation in their succession planning journey,” Ahmad Chahidi, head of wealth planning at Julius Baer Middle East, said.
Eyasses squad
Charlie Preston (captain) – goal shooter/ goalkeeper (Dubai College)
Arushi Holt (vice-captain) – wing defence / centre (Jumeriah English Speaking School)
Olivia Petricola (vice-captain) – centre / wing attack (Dubai English Speaking College)
Isabel Affley – goalkeeper / goal defence (Dubai English Speaking College)
Jemma Eley – goal attack / wing attack (Dubai College)
Alana Farrell-Morton – centre / wing / defence / wing attack (Nord Anglia International School)
Molly Fuller – goal attack / wing attack (Dubai College)
Caitlin Gowdy – goal defence / wing defence (Dubai English Speaking College)
Noorulain Hussain – goal defence / wing defence (Dubai College)
Zahra Hussain-Gillani – goal defence / goalkeeper (British School Al Khubairat)
Claire Janssen – goal shooter / goal attack (Jumeriah English Speaking School)
Eliza Petricola – wing attack / centre (Dubai English Speaking College)
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Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
Squad for first two ODIs
Kohli (c), Rohit, Dhawan, Rayudu, Pandey, Dhoni (wk), Pant, Jadeja, Chahal, Kuldeep, Khaleel, Shami, Thakur, Rahul.
The biog
Age: 59
From: Giza Governorate, Egypt
Family: A daughter, two sons and wife
Favourite tree: Ghaf
Runner up favourite tree: Frankincense
Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
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7pm: Flood Zone
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Red flags
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- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
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Forwards Calvert-Lewin, Foden, Grealish, Greenwood, Kane, Rashford, Saka, Sancho, Sterling, Watkins
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
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Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
Benefits of first-time home buyers' scheme
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Most sought after workplace benefits in the UAE
- Flexible work arrangements
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Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
Asian Cup 2019
Quarter-final
UAE v Australia, Friday, 8pm, Hazza bin Zayed Stadium, Al Ain
UAE currency: the story behind the money in your pockets
