According to Private Banker International, the Middle East is home to over 6,000 ultra-high-net-worth individuals. Projections indicate that by 2025, this number will increase by 25%, pushing their combined net worth to nearly $1 trillion.
Undoubtedly, the Middle East’s Family Offices have cemented their role as significant players in the global investment landscape, investment strategies that are influenced by cultural, economic and geopolitical factors. This article explores the current investment trends among Middle East Family Offices, exploring their preferences and how these might evolve.
Investment Trends
A notable trend is the strong inclination of Middle East Family Offices towards real estate investments. A recent UBS report highlighted that they hold the highest global allocation in this sector, suggesting a deep belief in real estate’s ability to provide stable and significant returns. The tangible nature of real estate, alongside its diversification benefits for an investment portfolio, makes it highly attractive.
The Middle East's private equity landscape is also rapidly evolving, driven by increased investor interest and government support. Global and local private equity firms are actively investing in the region, attracted by its strategic location, economic diversification opportunities, innovative regulatory environment and growing population. This confluence of factors has led to a surge in interest from Middle Eastern Family Offices seeking to invest in private equity funds.
Nevertheless, Middle East Family Offices must approach these investments with caution. Regulatory changes, market shifts and geopolitical tensions can significantly impact investment incomes. A diversified investment strategy across various asset classes and regions can offer a buffer against these uncertainties.
Future Outlook
Looking forward, the prognosis for Middle East Family Offices remains optimistic. As regional economies progress, new investment avenues are expected to arise, particularly in technology, healthcare and renewable energy.
To achieve enduring success, staying abreast of emerging trends and continuously adapting investment strategies will be key for Family Offices.
Find the right people
In the vibrant landscape of Middle Eastern Family Offices, where investment prospects are plentiful and market conditions continually adapt, having the right team in place is not just a strategic advantage but a necessity. The capacity to navigate complex financial markets, identify emerging trends and make informed investment decisions requires a blend of expertise, experience and a deep understanding of the region’s unique dynamics.
Agreus is a well-established full-service resource and recruitment consultancy specialising exclusively in Family Offices. With a presence in Dubai and extensive experience serving Middle Eastern clients, we bring a wealth of knowledge to the table.
At Agreus, we recognise the critical role that the right team plays in the success of Family Offices. Our recruitment and compensation consulting services are designed to help you attract and retain top talent. With a deep understanding of the Middle Eastern market and an office located in Dubai, Agreus is eager to serve as a trusted partner for Family Offices in the region. For a more tailored conversation, please do not hesitate to get in touch.