Maximilian Kunkel, the CEO of Global Family and Institutional Wealth Investment at Swiss bank UBS, anticipates that the economy of the United Arab Emirates will maintain its positive trajectory during the year 2024, supported by several influential structural developments that reflect a positive outlook for a more advanced and growing future.
Kunkel stated during a roundtable today to launch the Global Family Office Report for 2024 that the factors supporting the growth of the UAE economy include an increase in domestic consumption and a rise in the use of modern technologies, which enhances the efficiency of various economic sectors. He noted that the UAE economy benefits from increased support for startups, particularly in technology and innovation sectors, which are attracting growing interest from international investors.
Meanwhile, Niels Zilkens, Head of Wealth Management in the Middle East at UBS, confirmed that family offices in the Middle East continue to allocate a high percentage to alternative investments, particularly in the real estate sector, comprising 15 percent, due to the flourishing local market. He pointed out that artificial intelligence is considered one of the most promising areas for investment over the next two to three years.
Zilkens added that family offices in the Middle East utilize high-quality short-term fixed income to enhance portfolio diversification, which is 10 percent lower than their global counterparts. It is worth noting that the Global Family Office Report for 2024 surveyed the opinions of 320 family offices across seven regions worldwide, with an average net wealth of $2.6 billion and total wealth exceeding $600 billion.
