It's no surprise the future of private wealth is being shaped in the Gulf

Boats are anchored in the Dubai Creek. Cities like Dubai and Abu Dhabi are among the most popular in the world for affluent individuals. AFP

Macro-economic shifts, new technologies and evolving perceptions of value are altering what high-net-worth individuals (HNWIs) – especially younger ones – look for in their portfolios and wealth managers. As established markets scramble to adapt to this reality, high-growth regions like the Gulf have an opportunity to capture a new wave of capital.

This wave has already begun to descend on our shores, with cities like Abu Dhabi and Dubai among the most popular in the world for affluent individuals. A report this year by Henley and Partners shows Dubai now has more than 81,000 millionaires, 237 centimillionaires and 20 billionaires. Meanwhile, the Julius Baer Global Wealth and Lifestyle Report 2025 describes the emirate as a “firm challenger” to the traditional bastions of wealth amid rising property prices.

There are many reasons for the GCC’s increasing popularity among HNWIs. Traditional pull factors like low taxation and high security are still powerful draws. But there is another undercurrent lifting the region’s wealth management firms and it’s linked to something money can’t buy – an appetite for “the new”.

Indeed, the Gulf has become a region of early adopters with a youthful, tech-savvy population who embrace change.

It is perhaps unsurprising then to know that HNWIs in the Middle East are more prepared than their global peers for wealth managers to use artificial intelligence – not only for processing functions but for making investment decisions. EY’s 2025 Global Wealth report shows that 89 per cent of clients are already aware that their wealth managers may be using AI – more than any other region. In fact, 71 per cent in the region expect their wealth managers to use AI compared to 60 per cent globally.

This state-of-readiness among clients is partly down to a society that is already using AI widely in daily life and work. Interestingly, trust in AI tends to be higher in high-growth markets, according to the Global Wealth report. Ultimately, trust is heavily dependent on how data is used and protected.

GCC countries were among the first to establish ethical frameworks to govern data usage and enable financial companies to adopt AI. For instance, DIFC revised Data Protection Regulations in September 2023 – shortly after the global GenAI boom – with Regulation 10 specifically regulating autonomous systems. In doing so, the government instilled AI confidence in both wealth managers and clients early on.

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It’s a similar story across the GCC with Boston Consulting Group’s AI Maturity Matrix ranking both the UAE and Saudi Arabia as “AI Contenders”, reflecting their state-of-readiness to adopt AI on an advanced level. Meanwhile, Oman, Bahrain, Kuwait and Qatar are classified as “AI Practitioners”, indicating strong foundational progress towards AI-readiness.

Aside from their confidence in AI-enabled investing, HNWIs in the Middle East are also more open to alternative investments. Sixty-eight per cent of clients in the region already use alternative products compared with just 51 per cent globally. But it’s not just real estate, private equity and infrastructure that are attracting private capital in the Gulf. Cryptocurrencies are big business with many younger clients opting for digital assets.

Globally, regulatory complexity has made crypto a problematic choice. But in the GCC, governments have brought clarity with their unambiguous stance on digital assets. In March, Abu Dhabi-based MGX invested $2 billion in Binance, the world’s biggest crypto exchange, demonstrating the level of government backing for digital finance. And earlier, in 2022, Dubai launched the world’s first regulator dedicated exclusively to virtual assets, the Virtual Assets Regulatory Authority.

Crypto is just one of several emerging categories in a region where asset classes seem to crop up faster than anywhere else. The pace and scale of the GCC’s economic transformations are producing unprecedented opportunities for wealthy individuals as entire new industries appear with the backing of some of the world’s largest sovereign wealth funds.

For instance, Oman is establishing itself as a logistics hub with significant investments in port infrastructure. Today, its logistics sector is worth about $6 billion; by 2040, it is targeting $93 billion. This is just one example of defensive investment opportunities springing up all over the region as governments create the conditions for renewables, health care, education and technology to thrive.

The combination of these booming sectors and high-growth economies is a recipe for attracting investment. But when it comes to private wealth, the GCC has something few other regions have. It has highly agile and forward-looking regulatory environments and ultimately an investor base that is unafraid of disruption.

Here, capital may be prudent, but it is also pioneering. And ultimately, this is the spirit in which the future of private wealth will be shaped.