According to Amac News: Based on the report, the Middle East region is on the verge of a historic $1 trillion (AED 3.67 trillion) transfer to heirs and extended family members.
This includes the UAE’s high net worth individuals, whose wealth is expected to grow by 20 percent to $700 billion by 2022.
Digital technologies such as artificial intelligence, smart contracts, distributed ledger technology and tokenization offer promising ways to reduce barriers, improve transparency and ensure the safe and efficient transfer of assets.
Despite these new technologies, the report shows that only 24% of high net worth individuals have a comprehensive inheritance plan, highlighting the urgent need to improve inheritance processes.
More than half of families (53%) believe that collecting, recording and planning for the allocation of assets in extended families is so complex and time-consuming that it is difficult.
The report highlights the importance of close collaboration between wealth managers, family offices, regulators and service providers in creating a strong platform for wealth transfer and promoting adoption.
The CEO of the DIFC Innovation Center noted the importance of intergenerational wealth transfer in the Middle East and said that the report is the result of a collaboration with Julius Baer and Euroclear, and aims to use this turning point to drive meaningful change in the inheritance process.
He emphasized that the aim of the collaboration is to leverage emerging digital technologies to identify opportunities ahead and position the Middle East as a model for best practices in wealth transfer.
The CEO of Julius Baer also stressed the importance of advising clients on intergenerational wealth transfers, noting that attention must be paid to the changing landscape of assets, especially digital assets. He highlighted the potential of technology, particularly blockchain and tokenization, in facilitating a secure and transparent process for wealth transfer.