The investment appetite among family offices is strong in the region, with 93 percent in the UAE planning to invest within the next 18 months.

Across the Middle East, 67 percent of family offices intend to invest within that timeframe, while 73 percent of offices in Saudi plan to do the same.

The second Deloitte Middle East Family Office survey showed that distressed digital businesses were the most coveted opportunities, along with those that provide options for greater diversification.

“Personal health and wellbeing being such dominant factors also saw healthcare opportunities referenced,” the report noted. 

The report also included data which showed that the top three concerns of economic risk areas for family offices are the oil price, which was cited by 55 percent as their biggest concern, taxes, cited by 23 percent and cash collection, cited by 22 percent.

However, 75 percent said they predict business activity will return to historic levels within 18 months.

Succession is top priority

Deloitte said succession is the top priority for family governance with almost half selecting it as one of their top three areas of focus, and 59 percent said they felt their legal family governance framework is currently not fit for purpose.

The ability to transition leadership was also important in the survey, with 14 percent saying the next generation of their family would be able to lead their business immediately, and 64 percent saying they will be ready to lead within the next five years.

Scott Whalan, partner and financial advisory’s family office leader, Deloitte Middle East, said: “The resilience across the entire family ecosystem has been tested by the recent pandemic.

“Whilst many families have successfully adapted and realigned priorities, further work remains across areas such as succession planning, private wealth structures, and optimising business performance and investment portfolios. The theme has shifted from one of pessimism to optimism as families focus on positioning to thrive in the new normal.”

Looking back over the last year, 39 percent of those surveyed said all six Gulf states had been the most impacted by the pandemic. However, 23 percent thought Saudi Arabia was the most impacted, 23 percent thought the UAE was the worst affected, four percent thought it was Qatar, four percent Bahrain, and three percent thought it was Kuwait, and three percent Oman.

(Reporting by Imogen Lillywhite; editing by Seban Scaria)

imogen.lillywhite@refinitiv.com

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