00:00ل Thank you for the opportunity.
00:03وأنا جودم بعضكم على بعضهم.
00:10الطعام الجديد ب holiness أنزع مختلفة في عالمهم
00:14مختلفة فيه، وهي يحبط مع مختلفة.
00:18لاتوجود في العالم لسيارات وجود مختلفة
00:25ومن قديمة الآن.
00:27For example, 20 years ago, we were definitely more discussing about diversification outside of the region for different reasons.
00:37And nowadays, there is more discussion around investments within the region.
00:41So what we've seen from the report is that there is a higher attribution to investments towards emerging markets from this region,
00:50which is the family offices in the region have maybe a higher affinity towards emerging markets, including India.
00:57where we have clearly a higher allocation and also China.
01:01Family offices here are connected to operating businesses.
01:05So it's important for them to understand that there needs to be a diversification between the businesses that they have regionally and also the investment regionally.
01:14And also when it comes to the structuring of their wealth in general.
01:18So what we often see in this region, I think this is also something that came out of the report,
01:23is that inheritance planning or succession planning is somewhat something that is not on everybody's mind.
01:37Regional preferences, but there's also preferences in terms of real estate, in terms of asset classes.
01:42And I mean, you have been in this region, I have been in this region for a very long time.
01:47So real estate plays a very important role when it comes to investments.
01:50And that obviously drives the allocation to alternative investments for these clients and the family offices that we see here,
01:59because real estate forms part of the alternative space.
02:03So we talked about preferences right before, and the preferences are not only regionally different,
02:10but they're also different when it comes to asset classes.
02:13And in the Middle East, what is interesting for the ones that have been going to the Middle East is that real estate is on everybody's mind.
02:20So the real estate exposure and the affinity to real estate is the second highest globally,
02:27according to the report, to real estate in the Middle East.
02:31So that obviously drives the high exposure to direct private equity investments.
02:40And at the same time, in the Middle East, what you're seeing is the lowest exposure to public equity.
02:46And the question here, why is this?
02:48And I think one of the reasons why this is, is that in the Middle East,
02:53you have a concept of long-term partnership, of strong involvement, right,
02:59into investments, but also the level of sophistication that we have seen going up in recent years
03:07when it comes to talents that are working at family offices here in this region.
03:12And that's why we believe that the exposure to direct investments in this particular region is very high.
03:20We need to challenge them, obviously, from a UBS perspective.
03:23And we need to make sure that their asset allocation globally and holistically is still the right one,
03:29because obviously these are relatively higher risk investments,
03:33especially when you're risking, when you're investing in this region into private equity.
03:37So we would recommend to maybe go into infrastructure investments, for example,
03:42or then reallocate some of the larger real estate investments that they have here in the region
03:47into alternative investments such as hedge funds and private equity.
03:52Yeah, for example, you know, when a business or a family is heavily involved in the business here,
04:00let's say in real estate, right, and then they have additionally also a lot of real estate investments here in this region,
04:08then, of course, we will make them aware that their allocation of their overall wealth is very much tuned towards this region number one
04:17and also specifically towards this asset class.
04:19So we would then challenge them and say that I think it makes sense for you to have a more, you know,
04:26diversified investment and maybe go into more liquid assets, for example, in public equities.
04:31Or, you know, if you want to regionally diversify, we would then recommend them to go into different regions for investment purposes.
04:42So we're just trying to look at it from a holistic perspective,
04:46not that these clients are too much exposed to one region or to one business in particular.
04:52I mean, it's hard to say what exact amount family offices really allocate to AI.
05:06But what we're seeing in this region is that AI, healthcare, data centers are clearly a focal point, right, of a lot of family offices here.
05:18And by the way, there are also our long-term investment themes, you know, from a UPS perspective.
05:25And that, you know, somehow it's not surprising because the governments here in this region,
05:31they are really having a strategic vision, right, to foster these kind of industries quite significantly.
05:38I mean, when you look at, for example, Abu Dhabi, we have G42, with Stargate, which is a huge AI project.
05:49But also in Saudi, we have Humane, which is fostered by PIF, which is also a very large project in this particular area.
05:58And then, you know, in the healthcare space, we also have in Saudi, the healthcare transformation program that is undergoing.
06:05And these governments, they want to open this up for public investments as well.
06:11So naturally, family offices are exposed to investment opportunities in this specific regard, right?
06:18And I think that is definitely something that is interesting.
06:22It also is a testament of the foresight of some of these governments here in the region.
06:28Some of our clients, you know, we bank every second billionaire in the world.
06:34And what our clients would like to see is connectivity with these kind of investors,
06:40but also clients who have exposure to AI, who have exposure to these healthcare industries
06:47where they potentially can do connectivity and we can help them with them.
06:52I mean, for example, in Saudi, we had an event lately where we invested, where we invited some European investors.
07:00They came to Saudi, we gave them exposure to some of our Saudi investors.
07:04And the same just happened last week.
07:06I just came back from Hong Kong last week where we had a delegation of Middle East investors
07:12and we took them to Hong Kong at our Asian investors conference where we gave them exposure to some of our clients over there.
07:19So that connectivity is a big advantage for UBS and for our clients.
07:25Main advice would be for the family offices to early engage with the next generation.
07:33Yes.
07:34To make sure that the next generation is into the structure of the family.
07:42Know that there is quite an interest from family members to become part of the family office setup versus their operating businesses.
07:51And I think here we advise to start early on, also to make sure that the succession planning and the structuring of the wealth is properly organized
08:01so that we have a very stable and solid footing for the next generation to take over.
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