Middle East Family Offices Mostly Upbeat On Investment, Fret Over Oil, Taxes

Tom Burroughes

9 December 2020

A study of 80 prominent Middle East families finds that they are mostly optimistic about investment over the coming year but are concerned about oil price declines and changing taxes.

A study by be a key focus area within prominent family groups, recognising the need to rationalise operations, reposition investment portfolios and align management to revised strategies to ensure the sustainability of the family ecosystem going forward,” he said.

The report said that many of the families surveyed had been “braced for impact” from COVID-19.

“However, some aspects of the family office in respect of the private wealth required swift action. At 74 per cent, the majority of the families interviewed have separated and structured the family wealth away from the business and its assets. A further 76 per cent have opted to employ nonfamily members within separate entities most typically in the form of a private investment office,” it said.

The report added that technology and risk management “stand out” as the most exposed areas going into the pandemic, whereas governance, despite being an area in high demand, and liquidity reflect better levels of preparedness.