The next generation is becoming more involved in the investment strategy of their family office in the Middle East with a greater focus on digital assets and the long-term sustainability of the family office, new research* from Ocorian, the specialist global provider of services to high-net-worth individuals and family offices, financial institutions, asset managers and corporates, shows.
Ocorian’s study among family office professionals working in Bahrain, Saudi Arabia, United Arab Emirates, and Egypt collectively responsible for around $38.55 billion assets under management found more than two out of three (68%) say the next generation is taking a bigger role in investment strategy. Around one in five (20%) say they are becoming much more involved.
The main focus of their increased involvement is the long-term sustainability of the family office with 84% questioned highlighting that issue, while 79% point to exposure to digital assets as a focus of younger generations in investment strategy. Around three quarters (74%) say the growing involvement of younger generations is leading to an increased investment risk appetite at Middle East family offices.
Developing strong succession plans has been one of the key ways Middle East family offices have become more professional in their operations and structure, the survey found. Around 65% questioned identified that as the best example of increased professionalisation. Around 88% said Middle East family offices have become more professional in the past five years.
However 86% questioned believe that the issue of ensuring governance meets the needs and expectations of family members remains the biggest challenge for family offices in the Middle East while nearly half (48%) say having a robust succession plan in place is a major challenge.
Nina Auchoybur, Managing Director at Ocorian, commented: “The rapidly evolving local and global landscape and the increased participation of the younger generations in the investment strategy of family offices in the Middle East is driving the shift to investment portfolios with a greater focus on the long term and which embraces technology, evolving values, digital assets and global opportunities.
“The growing involvement underlines the need for strong succession plans which is being recognised by family offices which also realise that governance has to be a major priority in the years ahead.”
Ocorian’s award winning dedicated family office team provides a seamless and holistic approach to the challenges and opportunities families face. Its service is built on long-term personal relationships that are founded on a deep understanding of what matters to family office clients. Its global presence means Ocorian can provide bespoke structures and services for international families no matter where they live.
Key services include formation and administration of family offices, HR support services, support with lifestyle and luxury assets, family governance, resident and relocation services and specialist support with immigration, visas, payroll, marine and aircraft crew management and financial reporting.
