Perpetual Insurance could save $1trln family wealth in the Middle East from the 3rd Generation Syndrome

Perpetual Insurance could save $1trln family wealth in the Middle East from the 3rd Generation Syndrome

Dubai, UAE

News Highlights:

- Family business wealth to the tune of US$1 trillion (Dh.67 trillion) in the Middle East will keep changing hands one generation to the next in the next ten years;

- Dubai International Financial Centre (DIFC) launched the Global Family Business & Private Wealth Centre on the 1st of September 2022, to help nurture and promote an estimated $1 trillion wealth;

- It is estimated that only 20 per cent of family businesses are managed by the third generation in the Middle East;

- According to Capgemini Research Institute’s World Wealth Report 2021, the population of high-net-worth individuals (HNWIs) in the Middle East region grew by 6.8 percent to 800,000, while their wealth soared by 10.7 percent to $3.2 trillion in 2020.

Perpetual Insurance that insures the head of the family businesses for a longer term covering certain risks, could save a potential US$1 trillion worth of wealth in the Middle East in the next ten years as family business ownership changes hands from the first and second generation to the third that might suffer from the 3rd Generation Syndrome.

According to Capgemini Research Institute’s World Wealth Report 2021, the population of high-net-worth individuals (HNWIs) in the Middle East region grew by 6.8