The Great Wealth Transfer: The GCC's Next-Gen Capital is Taking Charge! 🚀

The global financial landscape is currently undergoing a monumental transformation driven by the "Great Wealth Transfer," an inter-generational move that's projected to shuffle a stunning $83.5 trillion by 2048. As the Capgemini Research Institute’s World Wealth Report 2025 confirms, this isn't just about moving money; it’s fundamentally redefining investment rules. Crucially, the Gulf Cooperation Council (GCC) region is positioned right at the heart of this global strategic shift.

The Next Generation: Active, Engaged, and Setting the Rules 😎

The new generation of high-net-worth individuals (HNWIs) across the Middle East isn't playing by the old rulebook—they have distinct investment preferences.

They Demand the Best (and the Digital!)

These clients aren't passive; they're extremely hands-on. In fact, according to the 2025 EY Global Wealth Research Report, nearly 55% of GCC clients reported arranging more advisor meetings in response to market volatility. That's a huge commitment, and it means global General Partners (GPs) can't just rely on handshakes anymore. This sophisticated client base expects top-tier, institutional-grade digital technology solutions to keep them in the loop.

Family Capital is Getting Serious

The financial muscle of the GCC is all about the growing institutionalisation of its family capital. Just look at Saudi Arabia: Abbas Hashmi, Principal of Saudi Family Holdings and program leader at Columbia Business School’s Global Family Enterprise Program, points out that family businesses in the KSA make up over 95% of all private enterprises and contribute more than 60% of non-oil Gross Domestic Product (GDP). This means they now demand high-level transparency and governance, like asking for bespoke deal terms.

The next generation has decidedly moved away from just preserving wealth passively. Ocorian’s research confirms they're done simply deploying capital into Western real estate or generic passive funds; they are actively hunting for aggressive, value-add opportunities.

 

Portfolio Power-Up: The Focus is Alternatives 📈

The core strategy here is clear: commit heavily to alternatives.

Private Equity is a Favourite

The data is telling. According to the UBS Global Family Office Report 2024, Middle East family office portfolios are often split almost evenly, with 50% allocated to alternative asset classes. They especially love Private Equity (PE), with allocations averaging 25% to 28% of their portfolios, easily beating the 22% global average.

Where the Money is Going Next

Looking ahead, we see where their confidence is strongest:

• Survey data shows a huge majority (64%) of fund managers expect to boost Infrastructure allocations by 25% to 50%. That’s a clear vote of confidence in national development.

• Speaking of growth, the Saudi asset management industry is projected to potentially exceed $500 billion by year-end 2030.

The generational transfer of wealth across the GCC is quickly turning local family offices into highly sophisticated global LPs. This seismic shift sees them move decisively from passive preservation to active, value-add investing, deeply aligning their capital with national diversification objectives. Private markets are the mandatory vehicles for this transformation, with Private Equity, Venture Capital, and the structurally essential Private Credit all seeing rapid growth. To capture this capital, global fund managers must stop offering standardised products and instead embrace bespoke fund structures, standardise co-investment as a core feature, and reposition themselves as strategic, long-term partners committed to the region’s economic transformation.

-Oliver Kirkbright