The Middle East is set to see seismic demographic power shifts over the next seven years which will dramatically change the focus of the private client industry. The insight comes from Ocorian, the specialist global provider of fiduciary services to high-net-worth individuals and family offices, which has produced a new analysis of the industry called The 2030 Trustee.
Saudi Arabia’s 2022 census reveals that 63% of its citizens are under the age of 30. In the Middle East and North Africa region more broadly, people under 30 make up 55% of the population, according to the OECD.
These large young populations will now be the ones coming into power economically, as businesses, wealth and responsibility are all handed down. The younger generations have different views and attitudes towards their wealth and how they want to make successes of themselves. For Private Client practitioners, this means that they will have to change the way they operate to suit the changing needs of their clients and manage those generational wealth transfers.
Many of these young people view themselves as entrepreneurial due to their exposure to international cultures and businesses, and perhaps they therefore want to break away from traditional industries and pursue their own ventures.
Lynda O’Mahoney, Global Head of Business Development – Private Client, said: “We are already dealing more and more with the next generation of Middle Eastern families and individuals who are looking to invest in their own ventures and make a success of themselves, and we expect this to increase over the next seven years. From what we see, we anticipate a shift from family run operating businesses to families becoming investors.
“Managing a generational wealth transfer is neither simple nor easy, and succession planning is coming into ever sharper focus for our clients in the Middle East. These conversations are becoming more common in many Middle Eastern cultures, so one of our key roles is to facilitate them and help bridge the gaps through the generations.
“The Middle East is changing, and we’re ready to change with it to ensure that our clients can maximise opportunities in this area.”
The 2030 Trustee series analyses the industry’s transformation over three pivotal periods: the seismic 2008 financial crisis, the current post-COVID-19 era, and are peeking into 2030 and the trends that will define the future. It is a compilation of nine incisive articles contributed by leading industry experts, and is available to download in full on Ocorian’s microsite.
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