Many family businesses build their wealth over the years through the hard work of their founders. The main challenge lies in preserving this wealth. In recent years, there has been a significant trend among companies in the region to establish family offices dedicated to managing this wealth.
Traditionally, wealth was managed through real estate, local stocks, and deposits. However, with the emergence of diverse industries, companies, sectors, and countries with varying growth potentials, families now need to manage their wealth more professionally by establishing a large investment team. This presents challenges in attracting these professionals to work as a cohesive team and retaining them.
Today, there are promising opportunities in private debt, which offers potentially high returns compared to the risks involved. Private equity remains a good option, especially in the current period marked by a lack of sufficient liquidity for lending to acquire companies. As for the real estate sector, particularly commercial real estate, it continues to face a crisis, making it too early to invest in these assets at this time.
There is a growing interest among many families to invest in cryptocurrencies. Abdulmohsin Al Omran suggests considering whether the goal is wealth preservation or creation. He believes that while wealth creation is prominent in the Gulf region, preserving it can be achieved by diversifying into other global economies.
Watch the full interview above.