Across the Gulf, family offices are shifting their investment focus. Where once the priority was preserving capital through bricks and mortar, many are now allocating a growing portion of their portfolios to technology. From artificial intelligence (AI) and financial technology (fintech) to digital infrastructure and climate tech, this pivot reflects more than a passing interest in innovation. It is the result of deeper structural change within family offices themselves, particularly as wealth begins to pass to a younger, more digitally fluent generation.

Over the past decade, Gulf-based family offices have played a growing role in global markets. These are not new institutions. Many trace their origins back several generations, established to manage the proceeds of successful trading businesses, real estate portfolios or state-aligned enterprises. They are now responsible for stewarding significant pools of capital on behalf of multiple branches of often complex and geographically dispersed families.

The timing of this generational transition matters. Across the GCC, some of the most prominent families are approaching succession milestones, with the second and third generations beginning to take on decision-making roles. In some cases, this is a planned process built into formal governance structures. In others, it is more organic, driven by the realities of ageing leadership or by younger family members asserting a more active role in shaping the family’s direction.

Generational transition

Whatever the process, the result is the same: younger voices are growing louder around the investment table. And with that has come a change in outlook. The new generation is typically more comfortable with risk, more attuned to global innovation and more eager to diversify beyond traditional asset classes. They are also often better connected to international ecosystems of founders, funds and advisers, particularly through education or time spent abroad.

This shift is becoming increasingly visible in the way Gulf family offices allocate capital. According to a recent survey by Ocorian, 68% of family offices in the region report greater next-generation involvement in investment strategy. Nearly 80% say that younger family members are pushing for increased exposure to digital assets, and over 70% believe the next generation is more open to higher-risk investments.

These figures are consistent with the trend on the ground. Some family offices are building internal venture arms or hiring teams with a mandate to source early-stage opportunities. Others are aligning with existing funds or accelerators, often with a focus on strategic sectors such as climate tech, AI, mobility or logistics. The emphasis is not just on financial returns, but also on future relevance. For some, investing in technology is as much about staying connected to a changing world as it is about growth.

Younger voices are growing louder around the investment table

The UAE and Saudi Arabia have led the way. In Dubai, the Private Office of Sheikh Saeed Bin Ahmed Al-Maktoum maintains a dedicated platform for early-stage technology investments, with partnerships across fintech, medical technology and sustainability.

In Riyadh, Alajlan Family Office has positioned itself as a selective, technology-focused investor. According to its website, the firm aims to invest in the top 0.5% of the more than 2,400 tech startups that have approached it. Its strategy blends in-house venture experience with machine learning tools to support deal screening and portfolio construction. While the family office also invests in traditional asset classes such as real estate, its public messaging reflects a strong bias towards high-growth, innovation-led businesses.

Shifting challenges

With this new direction comes new challenges, one of which is governance. Many family offices are built on consensus, with investment decisions traditionally taken with caution and an eye towards long-term preservation. Introducing higher-growth, more volatile assets into the mix requires not only a shift in mindset but also appropriate checks and balances. Where younger family members are pushing for greater agility, older generations may prefer continuity. Finding the right structure to balance both instincts is key.

Another challenge is capacity. Investing in technology is not the same as buying property or holding public equities. It requires access to deal flow, an understanding of the underlying technology, and the ability to carry out due diligence in often opaque or fast-moving environments. Some families are addressing this by building in-house teams with venture experience. Others are relying more heavily on trusted advisers or co-investment networks. In both cases, the trend is towards greater professionalisation.

The operational infrastructure of family offices is also evolving. As portfolios become more complex, offices are investing in systems that can track performance, manage risk and provide clear reporting across multiple jurisdictions. Cybersecurity, data protection and regulatory compliance are rising up the agenda. In parallel, several GCC states have strengthened their family office regimes and legal frameworks, providing more certainty and support for multi-generational wealth planning in a digital age.

It is also worth noting that the interest in technology is not necessarily replacing more traditional asset classes. Real estate still plays a dominant role in most Gulf family portfolios, and private equity continues to attract capital. The direction of travel is clear, however. The younger generation is not discarding the values of those who came before them. They are simply adding new tools to the family’s investment toolkit.

Looking ahead, the implications are significant. For professional advisers, understanding the internal dynamics of family offices is just as important as understanding external market conditions. Advice that may have suited one generation may need to be reframed or adapted to suit the next. Structuring flexibility into governance documents, creating space for differentiated investment strategies and building succession plans that accommodate ambition as well as caution will all be key.

Technology investment by Middle East family offices is not a passing trend. It is the outward expression of a generational change that is already well under way. As younger family members take the reins, they bring with them new priorities, new networks and a different view of what it means to preserve and grow wealth. For the families that embrace this shift with clarity and care, the opportunities will be considerable.