The UAE’s wealthiest families are outpacing global counterparts in adopting digital assets and artificial intelligence (AI) as part of their wealth management strategies. A new study by Standard Chartered Global Private Bank reveals that 71% of ultra-high-net-worth families in the UAE see strategic investments in digital assets, including cryptocurrencies, NFTs, and tokenised assets, as essential. This figure surpasses the global average of 69%, highlighting the UAE’s position as a forward-thinking wealth hub.
UAE’s Adoption of AI in Wealth Management
The use of technology in wealth management is not limited to digital assets. A significant 75% of UAE respondents expressed trust in AI tools for wealth management, with the understanding that human advisers should still make critical decisions. This trust in AI aligns closely with the global figure of 70%. According to Vinay Gandhi, Global Head of South Asian Community and Regional Head of Europe, Middle East and Africa at Standard Chartered Private Banking, family offices in the UAE are incorporating technology in a manner that reflects both innovation and discipline. He notes that these families view digital assets and AI not as speculative tools but as integral to creating a more efficient and resilient wealth ecosystem.
Strong Governance and Succession Planning
The study also highlights the UAE’s commitment to strong governance in family wealth management. Ninety-six percent of UAE respondents regularly review and optimise their governance frameworks, exceeding the global average of 94%. Additionally, 92% of UAE families have formal conflict-resolution processes in place, mirroring the global figure.
Succession planning is a key area of focus. Over 67% of UAE family offices report active or extensive involvement of younger generations in wealth decisions. This younger involvement is particularly evident in areas such as digital diversification, sustainability, and impact-driven investment strategies. The study also found that 92% of UAE families align on philanthropic priorities, and 88% favour supporting national or global causes, surpassing the global average of 80%.
The Growing Importance of Global Estate Planning
Cross-border succession planning is another area where UAE family offices are excelling. The study shows that 92% of UAE respondents believe better estate planning could save millions in inheritance transfer costs, above the global average of 83%. This underscores the UAE’s forward-thinking approach to long-term wealth planning.
The report also indicates that family offices around the world are adjusting their strategies. A majority of respondents are rethinking governance and considering relocating their offices to improve cybersecurity and access to talent. The increased complexity in managing wealth is also leading to a rise in family conflicts, with 73% of global family office professionals reporting such disputes. Despite these challenges, 84% of families worldwide agree that next-generation involvement is critical for the long-term sustainability of family wealth.
Conclusion
The UAE’s family offices are at the forefront of adopting new technologies while maintaining strong governance and planning for the future. By embracing digital assets, AI, and early involvement of younger generations, UAE families are setting a model for wealth management that blends modernisation with resilience. As global wealth hubs face similar challenges, the UAE’s approach could offer valuable insights into balancing innovation with governance in securing multigenerational wealth.
