The risk appetite of rising generations (aged between 18 and 40) in wealthy families compared to wealth holder generation is the highest in the Middle East, according to Julius Baer’s 2023 Family Barometer. 

The size of the first substantial investment by Middle Eastern families ranges between $1 million and $2 million, compared to $250,00 to $1 million for families in the Americas and Europe. 

Moreover, the rising generation is ready to take on more responsibility and wants to leave their personal footprint and legacy, the Swiss private banking group report stated. 

Moreover, the report found that geopolitical risk and inflation were a concern, especially in the Middle East, as wealthy families seek specialist advisors to help navigate the tax and regulatory systems. 

Family governance plays a key role in the Middle East as good governance helps to preserve the legacy through generations. In addition, wealthy families in the region favour real estate and direct investments compared to other markets. 

Given the vital role family businesses play in society and the fact that over $1 trillion of assets will move hands in the next decade in the region, wealth and succession planning takes centre stage, Regis Burger, Head of Middle East & Africa at Julius Baer, said. 

“Developing the next generation to take over while ensuring effective governance can be quite a challenging process to manage,” he added. 

The 2023 report, in collaboration with PwC Switzerland, is based on the views of more than 1,500 internal and external experts from Europe, Asia, the Middle East, and the Americas.            

(Editing by Brinda Darasha; brinda.darasha@lseg.com)