Many families around the world invest in single-family and multi-family offices, but this industry still requires significant development in the Gulf.
Family offices have diverse needs and often collaborate with accounting firms and firms specializing in establishing offshore companies. The larger the wealth, the greater the number of specialists that family offices need to collaborate with. What many do not expect is the difficulty of managing these human resources. While enthusiasm is high initially, many find it difficult to manage and retain talent over time, leading them to seek external expertise.
Family offices in the Gulf have long been experienced in alternative investments such as private equity and real estate, and more recently in private debt. This ratio is comparable to that of the West, and the key difference lies in the application method. While family offices worldwide adopt long term investment policies for future generations, many families in the Gulf still take a more short-term, venture-based approach.
The earlier the family starts this type of planning and educates its members on the importance of planning for future generations, the easier it becomes to transfer and preserve wealth.
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