Financial advisors turn to Gulf’s ultra-high-net-worth families

More financial services firms that cater to ultra-high-net-worth families are popping up in the Arabian Peninsula as family offices emerge as one of the fastest-growing segments for wealth creation.

Octagon, a Dubai-headquartered family office-as-a-service firm, announced on Thursday it is now taking UAE clients.

The Great Wealth Transfer is forecasted to pass nearly $20 trillion from the older generations to Gen-X, Millennial and Gen-Z adult children and grandchildren over the next two decades.

This phenomenon will be acutely felt in the UAE and Saudi Arabia, where family businesses make up about 90% and 60% of private companies, respectively, according to government figures.

More family offices are cropping up to deploy this expanding pot of wealth as diversification from oil picks up pace in the region and opportunities for investment expand.

Octagon says it is geared specifically to family offices – for established and newly incorporated entities – with services including asset management, corporate services, business management and investment development in “lifestyle verticals” such as real estate, education and health.

Family office clients “have different wealth management perspectives – with more diversified portfolios, and a greater technology and impact focus,” the company said in a media release.