Dubai: In the Gulf, the younger ones are handing out some lessons on investments with a humane touch. Or with an ‘ESG’ (environmental, social, and corporate governance) mentality.
That’s according to findings by Barclays’ private banking division. More than half of HNW (high net worth) individuals in the Gulf say their children have been leading the family on sustainable and responsible investment matters. That’s against the 68 per cent average for their global peers.
And 58 per cent in the Middle East agree that “responsible investing is now important to them”, offering further evidence of the “potential of ESG issues to align with overall wealth objectives across generations”.
Appetite for risk
These mindset changes are also influencing how investors cutting across generations are likely to chase investment risks. The Barclays’ findings suggest Sixty-one per cent of family members globally cite different risk appetites between the generations as “affecting” decisions on investments as compared to 46 per cent in the Middle East.
Among Saudis, factors such as the outlook on life creates conflict within families when it comes to risk taking. This is less apparent among high net worth families in the UAE.
Rahim Daya, regional Head of Private Banking at Barclays, said: "The report findings reflect that 76 per cent of all respondents in the Middle East state responsible investing is important to their family. While differing life outlooks and values may determine discrepancies in risk investment appetites across the generations, it is encouraging to see that impact investing is a movement that resonates with individuals of all ages.”