RIYADH: Although family offices have historically had a significant impact on private capital investment, their contribution to company funding and early-stage entrepreneurs has frequently gone unnoticed. These organizations have always prioritized stability, wealth preservation, and strategic investments that support their business objectives.
However, a change is taking place as family offices expand their venture capital exposure through fund allocations, direct investments, and collaborations with startup incubators. According to a Campden Wealth and HSBC Global Private Banking survey, family offices in the Middle East and North Africa are readjusting their investing strategies with a focus on stability and selective diversification.
With real estate making up 34% of portfolios and a net increase in interest of 44%, which represents the difference between the percentage of family offices aiming to increase their holdings and those aiming to decrease them, real estate continues to be a dominant asset class. It shows significant momentum in real estate investments.
With net gains in interest of 33% and 50%, respectively, bonds and commodities are also becoming more popular as family offices emphasize safe asset classes in the face of global economic uncertainty. MENA family groups, on the other hand, have little desire to increase their exposure to debt or private equity, as evidenced by the low net change in these categories.
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