The Establishment of The Family Office: The company was founded in 2004 after Abdulmohsin Al Omran gained extensive experience at Goldman Sachs and visited family offices in the US and Europe. He was inspired to create a specialized multi-family office in the Gulf to manage the wealth of multiple families.
Early Challenges: The Family Office began with limited resources and operated from home using a shared computer, amid a lack of financial regulations governing asset management in the region. Despite this, the company secured its first license from the Central Bank of Bahrain (CBB) through a special exemption, followed by the issuance of regulatory frameworks just six months later. This milestone paved the way for the company to expand and obtain licenses from eight global regulatory bodies, laying the foundation for a strong and distinguished organizational structure.
Lessons for Youth and Entrepreneurs: Entrepreneurship requires starting with modest resources, learning from small mistakes, and persevering through challenges. Abdulmohsin Al Omran emphasized the importance of adapting to limited resources initially to avoid significant losses in the future.
The Importance of Financial Planning: Effective investing begins with setting clear goals and accurately assessing risk levels based on clients' personal needs. Sticking to the proposed investment policies helps achieve returns and avoids poorly informed investment decisions.
Digital Innovation: The digital transformation journey began in 2014 as part of a long-term strategy to organize data, integrate systems, and leverage artificial intelligence (AI) to enhance efficiency. This transformation faced challenges, particularly in convincing employees of the importance of change.
Engaging with Major Investment Institutions: The Family Office’s success in building strategic relationships with global companies like Blackstone and BlackRock relies on maintaining a professional and well-structured operational framework, reflecting the company’s commitment and ability to engage with major markets.
The Role of Regulation and Oversight: Operating under eight regulatory bodies in different countries demands strict adherence to global standards. The Family Office does not view regulation as a burden but as an effective tool to enhance performance and compliance, providing a competitive advantage.
Investment Strategies and Wealth Preservation: The company prioritizes portfolio diversification as a means to preserve and grow wealth while fostering a culture of risk assessment to achieve the needed returns without excessive risk exposure.
Investment Opportunities in Saudi Arabia: There are promising investment opportunities in KSA driven by Vision 2030 and large-scale projects. The company believes in deeply analyzing this market and identifying the optimal timing for investment to achieve the best outcomes for its clients.
Future Investment Trends: The US market remains a primary investment destination due to its financial depth and dynamism. The focus is on diversifying assets to achieve sustainable returns that are aligned with clients’ investment goals.
Private Markets Investments: Investing in private companies offers the potential for higher returns compared to public markets, provided that investors are willing to accept longer periods of illiquidity.
Technology and Artificial Intelligence: Utilizing AI and modern technology enhances client relationships and provides precise investment recommendations, improving operational efficiency and enabling innovative solutions that meet clients' aspirations while keeping pace with rapid global developments.
Geopolitical Challenges: Since 2019, The Family Office has structured client investments within an independent sister investment company in Switzerland, providing effective protection against geopolitical fluctuations in the region. It’s also worth noting that the region is considered safe for investments in general.
Client Relationship Management: At The Family Office, we adopt a transparent approach with clients by reviewing investment policies and assessing how well clients adhere to agreed-upon procedures, ensuring improved future performance.
Watch the full webinar above for more details.