The DIFC Innovation Hub, in collaboration with Swiss wealth management firm Julius Baer and financial infrastructure provider Euroclear, unveiled a new whitepaper titled Navigating the Future of Inheritance.
This report highlights the role of emerging technologies in transforming wealth transfer processes, with a specific focus on the Middle East, where a historic $1 trillion (AED 3.67 trillion) wealth transition is underway.
The whitepaper explores the complex challenges of inheritance in the region, particularly as High Net Worth Individuals (HNWIs) in the UAE saw their assets grow by 20% to reach $700 billion since 2022. The report underscores how technologies such as Artificial Intelligence, Smart Contracts, Distributed Ledger Technology, and Tokenisation can enhance transparency, security, and efficiency in asset transfers.
Despite the potential of these technologies, the report reveals that only 24% of HNWIs have a complete estate plan in place, and 53% of families find wealth allocation to be overly complex and time-consuming. This points to a critical need for better processes in managing inheritance.
Key stakeholders in wealth management, including family offices, regulators, and service providers, must collaborate closely to address these challenges. Mohammad Alblooshi, CEO of DIFC Innovation Hub, emphasized the region’s unique position in leveraging digital technologies for wealth transfer, positioning the Middle East as a leader in best practices.
Julius Baer’s Alireza Valizadeh and Euroclear’s Isabelle Delorme echoed the importance of embracing innovation in navigating this evolving landscape, aiming to empower stakeholders and build a future-ready framework for generational wealth transfer.
News Source: Emirates News Agency
