Gulf heirs reshape and relocate wealth to the UAE

A new generation of Gulf heirs is reshaping family office portfolios, steering away from real estate and investments in their own businesses and into hedge funds, crypto, and private credit, Bloomberg reports. The region’s expected USD 1 tn intergenerational wealth transfer is driving a surge in crypto investments among Emirati families, analysts say, with allocations to tokenized funds and digital assets rising. Still, portfolios of riskier assets remain more conservative than in the West, with older generations’ preference for liquidity and property tempering the new appetite for risk.

REMEMBER- Global surveys by Goldman Sachs and Citi Wealth point to the same duality. Family offices are taking on more risk — one-third now hold crypto and nearly half boosted exposure to public and private equity — yet remain cautious overall.

The UAE’s two financial hubs are fast becoming the region’s hedge fund centers, with Dubai International Financial Center now hosting over 70 firms and Abu Dhabi home to heavyweights like Brevan Howard and Marshall Wace. Their local presence is helping connect managers directly with allocators, as family offices increasingly conduct their own due diligence instead of relying on banks, said Nettlestone Capital’s Edwin Lawrence.