The Middle East has long been a centre of private wealth. Now, it’s rapidly becoming a global hub for family offices and alternative funds, as wealthy families formalise how they manage and grow their capital.
According to Knight Frank’s Wealth Report 2025, the population of individuals in the Middle East with more than US$10 million grew 2.7% in 2024, with almost 10% of those in the US$100 million+ bracket, a far larger proportion than any other region. At the very top, Forbes Middle East counts 38 billionaires across eight MENA countries in 2025, with a combined net worth of $128.4 billion – more than double the total reported in 2024.
This surge in wealth is changing how families in the region operate. Rather than managing assets informally, more are establishing Middle East family offices to centralise decision-making, institutionalise governance, and deploy their capital through increasingly sophisticated investment and fund structures.
Rising private wealth and global capital inflows
Middle East family offices sit at the intersection of two reinforcing trends:
- Regional wealth creation driven by energy, infrastructure, real estate, technology and diversified industrial groups
- Inbound global capital as the region becomes more attractive for relocation, investment and business expansion
Knight Frank’s analysis shows the Middle East firmly among the world’s fastest-growing wealth regions, with rising numbers of high- and ultra-high-net-worth individuals. The UAE, in particular, has become a magnet for global capital and talent. At the end of December 2024, the total number of millionaires in the UAE was 130,500, making it the 14th largest wealth market globally. The number of residents with US$100 million+ in liquid investable wealth has surged by 110% over the past decade.
Regulatory, legal and lifestyle advantages of the Middle East
Leading regional financial centres
The Middle East is home to several financial hubs that have deliberately positioned themselves as family office and private capital centres:
- Dubai International Financial Centre (DIFC): A mature common law financial centre that has introduced “Family Arrangements Regulations” allowing qualifying family structures to operate without registering as a “designated non-financial business or profession,” which simplifies regulatory burdens for many family offices
- Abu Dhabi Global Market (ADGM): An international financial centre with a strong investment ecosystem, increasingly home to family offices, private funds and global managers opening regional bases
- Riyadh and other Gulf hubs: Supported by ambitious economic diversification programmes and capital markets development, including a pipeline of IPOs and public-private partnerships
These ecosystems provide regional family offices with access to regulated fund platforms, asset managers, banks, advisers and knowledgeable service providers, all within a time zone that bridges Europe, Asia and Africa.
Favourable legal and tax landscape
Regulation and tax policy have also been evolving to support long-term family wealth:
- Family Business Law in the UAE aims to support the continuity and governance of family businesses through clear frameworks for ownership transfer and dispute resolution
- The UAE’s tax regime remains highly attractive for UHNW families, with no personal income tax, capital gains tax or inheritance tax
- Many jurisdictions in the region offer flexible structuring options, including trusts, foundations, holding companies and special purpose vehicles (SPVs) that can be tailored to Sharia considerations and cross-border tax planning
Quality of life and global connectivity
For globally mobile families, the Middle East also offers excellent connectivity with Europe, Africa and Asia. Add in its high-quality infrastructure, healthcare and education, plus robust property markets in regional hubs such as Dubai and Doha, and the region has become far more than a convenient booking centre. It’s a highly attractive base of operations for Middle East family offices and their principals.
From wealth hub to fund hub: Fund administration for Middle East family offices
As wealth has grown, so has the sophistication of how that wealth is managed. Many family offices in the Middle East now operate as institutional investors and, increasingly, as fund sponsors.
Common developments include:
- Using fund structures to organise family capital: Families pool capital from different branches into formal fund vehicles (for example, limited partnerships or fund companies) to make coordinated investments in private equity, venture capital, real estate or private credit
- Becoming strategic LPs and co-investors: Middle East family offices are allocating more to global alternative funds, often taking sizeable LP stakes and negotiating co-investment rights to gain direct exposure alongside managers
- Launching proprietary funds and platforms: Some of the largest family offices are setting up their own sector- or theme-specific vehicles and inviting other families or institutions to participate, effectively functioning as boutique fund managers
To support this evolution toward a global fund hub, the broader ecosystem has expanded. DIFC, ADGM and other regional centres now host a growing population of alternative investment managers and robust financial service providers.
For the professionalised family office, partnering with a specialist fund administrator allows them to run institutional-grade structures without building out large in-house operational teams, freeing internal resources to focus on strategy, origination and relationships.
How Middle East family offices are diversifying into private equity, venture capital and alternatives
Our recent whitepaper on family offices and the rise of alternatives highlights a clear global shift: family offices are allocating more to private equity, venture capital, real assets, hedge funds and private credit, and relying less on traditional public markets and cash.
Middle East family offices are at the forefront of this trend. While they retain a strong preference for direct investments in family-owned businesses, real estate developments and regional infrastructure, family offices in the UAE and Saudi Arabia in particular are increasing allocations to hedge funds, private equity and technology investments, blending direct and fund-based exposure.
Sharia-compliant investing also remains an important consideration. Many families favour Sharia-compliant asset classes and products across sukuk, real estate and private equity, allowing them to participate in global capital markets while honouring religious principles.
How we support Middle East family offices and fund investors
As the Middle East continues its expansion from wealth hub to fund hub, families in the region need partners who understand both family office dynamics and institutional fund operations.
With offices in DIFC and ADGM, IQ-EQ supports Middle East family offices with:
- Global structuring and entity management: Establishing and maintaining holding companies, trusts, foundations, and SPVs in key jurisdictions
- Fund and asset administration: NAV calculation, investor servicing, financial statements, and regulatory reporting for private equity, venture capital, real estate, private credit and hedge fund structures
- Governance, risk and compliance support: Helping families meet regulatory requirements while strengthening internal controls and decision-making
- Consolidated reporting and middle-office services: Providing multi-asset, multi-jurisdiction reporting and operational support so principles and investment teams can focus on strategy
Whether you’re setting up a family office in the Middle East for the first time or looking to scale an existing platform through alternative investments, IQ-EQ can help you build a robust, future-ready operating model. Contact our team today.
