The Middle East is on the cusp of a profound economic and cultural shift.
Family-owned businesses, which contribute about 60 per cent of the UAE’s gross domestic product, are preparing to transfer a staggering $1 trillion in assets to the next generation over the next decade in the region, according to accounting and auditing firm KPMG.
This wealth transfer is accompanied by a rise in women beneficiaries, signalling a significant evolution in both gender dynamics and financial planning.
In response, the financial sector is rapidly adapting to meet the unique needs and values of the next generation, one that is driving new financial trends with its forward-thinking approach.
Sustainability and ESG investing
Sustainability has become a defining characteristic of next-generation investors in the Middle East.
The younger generation demonstrates a strong commitment to tackling climate change and supporting environmental, social and governance (ESG) principles in their investment strategies, according to research by PwC.
Approximately 64 per cent of Middle Eastern next-generation leaders believe their family businesses have a responsibility to combat climate change, significantly higher than their predecessors, PwC found.
This mindset shift is not just related to financial returns but also to making a positive social and environmental impact.
Younger investors are increasingly aligning their wealth with the United Nations’ Sustainable Development Goals, with 60 per cent either actively supporting or planning to contribute to these global initiatives, PwC research found.
Additionally, millennials and Gen Z are leading the way in demanding investments that reflect their concerns about climate change.
According to a Knight Frank report this year, 66 per cent of millennials in the region prioritise purpose-driven investments, increasing demand for green bonds and ESG funds.
The rise of alternative investments
A distinguishing feature of next-generation investors in the GCC is their preference for alternative assets over traditional stocks and bonds.
The region’s younger investors, armed with financial literacy and supported by government initiatives, are more willing to take calculated risks in emerging industries like private equity, venture capital and digital assets.
A recent study revealed that 17 per cent of their portfolios are allocated to alternative assets, compared to just 5 per cent for older generations, and this trend is set to grow, according to the 2024 Bank of America Private Bank Study of Wealthy Americans.
Venture capital, in particular, has captured the interest of younger investors, offering them the chance to contribute to the growth of sectors such as energy transition and renewables.
The appeal lies not only in potential high returns but also in the opportunity to align their financial goals with their values.
Women’s empowerment and influence
The continuing wealth transfer is also transforming gender dynamics in the region.
The UAE’s seventh ranking globally on the UN Gender Inequality Index in 2024 highlights the increasing role of women in business and finance.
As women in the Middle East control almost $1 trillion in wealth, according to the Boston Consulting Group, and as younger generations take on more leadership roles, their influence in wealth management is growing exponentially.
With women becoming key beneficiaries of family wealth, they are driving the region toward greater gender equality in business
Francois Farjallah,
head of Middle East, EFG International
With women becoming beneficiaries of family wealth and playing more prominent roles in financial decision-making, they are not only shaping the future of wealth management but also driving the region towards greater gender equality in business.
The new face of wealth management
As the next generation takes the reins of family businesses and wealth, they are reshaping the financial landscape with their purpose-driven investment strategies and openness to alternative investments.
Their focus on sustainability, willingness to embrace risk and demand for impact investing are not only modernising wealth management but also setting new benchmarks for the industry across the Middle East.
With family offices increasingly led by the next generation, the financial sector is undergoing a significant transformation, pivoting towards innovation, inclusivity and long-term sustainability.
Francois Farjallah is head of Middle East at EFG International
UAE currency: the story behind the money in your pockets
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now
Buy farm-fresh food
The UAE is stepping up its game when it comes to platforms for local farms to show off and sell their produce.
In Dubai, visit Emirati Farmers Souq at The Pointe every Saturday from 8am to 2pm, which has produce from Al Ammar Farm, Omar Al Katri Farm, Hikarivege Vegetables, Rashed Farms and Al Khaleej Honey Trading, among others.
In Sharjah, the Aljada residential community will launch a new outdoor farmers’ market every Friday starting this weekend. Manbat will be held from 3pm to 8pm, and will host 30 farmers, local home-grown entrepreneurs and food stalls from the teams behind Badia Farms; Emirates Hydroponics Farms; Modern Organic Farm; Revolution Real; Astraea Farms; and Al Khaleej Food.
In Abu Dhabi, order farm produce from Food Crowd, an online grocery platform that supplies fresh and organic ingredients directly from farms such as Emirates Bio Farm, TFC, Armela Farms and mother company Al Dahra.
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End of free parking
- paid-for parking will be rolled across Abu Dhabi island on August 18
- drivers will have three working weeks leeway before fines are issued
- areas that are currently free to park - around Sheikh Zayed Bridge, Maqta Bridge, Mussaffah Bridge and the Corniche - will now require a ticket
- villa residents will need a permit to park outside their home. One vehicle is Dh800 and a second is Dh1,200.
- The penalty for failing to pay for a ticket after 10 minutes will be Dh200
- Parking on a patch of sand will incur a fine of Dh300
more from Janine di Giovanni
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
How will Gen Alpha invest?
Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.
“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.
Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.
He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.
Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”
Directed: Smeep Kang
Produced: Soham Rockstar Entertainment; SKE Production
Cast: Rishi Kapoor, Jimmy Sheirgill, Sunny Singh, Omkar Kapoor, Rajesh Sharma
Rating: Two out of five stars
Chatham House Rule
A mark of Chatham House’s influence 100 years on since its founding, was Moscow’s formal declaration last month that it was an “undesirable
organisation”.
The depth of knowledge and academics that it drew on
following the Ukraine invasion had broadcast Mr Putin’s chicanery.
The institute is more used to accommodating world leaders,
with Nelson Mandela, Margaret Thatcher among those helping it provide
authoritative commentary on world events.
Chatham House was formally founded as the Royal Institute of
International Affairs following the peace conferences of World War One. Its
founder, Lionel Curtis, wanted a more scientific examination of international affairs
with a transparent exchange of information and ideas.
That arena of debate and analysis was enhanced by the “Chatham
House Rule” states that the contents of any meeting can be discussed outside Chatham
House but no mention can be made identifying individuals who commented.
This has enabled some candid exchanges on difficult subjects
allowing a greater degree of free speech from high-ranking figures.
These meetings are highly valued, so much so that
ambassadors reported them in secret diplomatic cables that – when they were
revealed in the Wikileaks reporting – were thus found to have broken the rule. However,
most speeches are held on the record.
Its research and debate has offered fresh ideas to
policymakers enabling them to more coherently address troubling issues from climate
change to health and food security.
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Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
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%3Cp%3EEtihad%20Airways%20operates%20seasonal%20flights%20from%20Abu%20Dhabi%20to%20Nice%20C%C3%B4te%20d'Azur%20Airport.%20Services%20depart%20the%20UAE%20on%20Wednesdays%20and%20Sundays%20with%20outbound%20flights%20stopping%20briefly%20in%20Rome%2C%20return%20flights%20are%20non-stop.%20Fares%20start%20from%20Dh3%2C315%2C%20flights%20operate%20until%20September%2018%2C%202022.%C2%A0%3C%2Fp%3E%0A%3Cp%3EThe%20Radisson%20Blu%20Hotel%20Nice%20offers%20a%20western%20location%20right%20on%20Promenade%20des%20Anglais%20with%20rooms%20overlooking%20the%20Bay%20of%20Angels.%20Stays%20are%20priced%20from%20%E2%82%AC101%20(%24114)%2C%20including%20taxes.%3C%2Fp%3E%0A%3Cp%3E%3C%2Fp%3E%0A
