Middle East War: Family Offices Taking Medium-Term Approach, Reducing Exposure To Dollar

2026-05-31 02:32:15

(MENAFN- Khaleej Times) Family offices in the Middle East and globally are taking a medium-term approach, considering reducing exposure to the US dollar and prioritising diversification across different asset classes amid geopolitical conflict and rising threats around recessions.

According to UBS Global Family Office Report 2026, geopolitical conflict has emerged as the top risk across both short- and long-term horizons, while concerns over global debt levels and recession threats are rising.

Recommended For You

In response, it said, family offices are taking a measured, medium-term approach, prioritizing diversification across asset classes, currencies and regions, rather than making abrupt allocation shifts.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

The 2026 report 2026 surveyed family office clients of UBS around the world on the unique challenges and opportunities they face. Drawing on insights from 307 family offices across more than 30 markets with an average net worth of $2.7 billion, the report finds that family offices are prioritising resilience, diversification and long-term thematic opportunities, as they prepare for sustained geopolitical and economic uncertainty.

Where are Middle East family businesses investing?

Family offices in the Middle East have heavy exposure to the the US market as nearly half of their portfolios are anchored in North America.

The Swiss bank's study found that family offices in the Middle East demonstrate the highest level of planned portfolio change globally, with 82 per cent intending to adjust strategic allocations.

With 50 per cent of their portfolios anchored in North America, the other meaningful exposure are to the Western Europe and the Middle Eastern markets, reflecting a hybrid investment approach.

Thematic focus includes AI (50 per cent), AI-enabled healthcare (35 per cent) and infrastructure (30 per cent), suggesting a strong interest in technology adoption alongside regional development priorities.

Family businesses are the backbone of the Middle East economy, commanding a scale that few regions can match. Across the Mena region, family-owned enterprises account for an estimated 80 per cent of all private sector companies, and in the GCC alone their combined wealth is valued in the hundreds of billions of dollars. In the UAE specifically, family businesses contribute around 60 per cent of GDP and employ 80 per cent of the workforce, operating across multiple countries and rivalling publicly listed corporations in reach and revenue.

Reducing exposure to the dollar

Benjamin Cavalli, head of strategic clients and global connectivity at UBS Global Wealth Management, said family offices continue to adjust portfolios in measured ways – diversifying across assets, currencies and regions, while maintaining exposure to long-term themes such as artificial intelligence with greater selectivity.

“Many are considering a reduction in exposure to the US dollar or are planning to diversify regionally, but North American assets clearly continue to represent the greatest share of allocations,” added Cavalli.

According to UBS Global Family Office Report 2026, Middle East stands out for its proactive and high-conviction approach to reallocating capital, potentially driven by both opportunity and the need to navigate global uncertainty.