TL;DR
- Generational pivot: Gulf heirs like Bahrain’s Kanoo twins are redirecting family fortunes from real estate into Bitcoin, hedge funds, and digital assets, with early crypto bets sold at a profit and later managed through hedge fund structures for risk control.
- Regional expansion: The twins launched a digital asset firm serving external clients, while global banks such as Citigroup, Barclays, and Deutsche Bank scale Gulf operations to capture part of an estimated $1 trillion wealth transfer.
- New strategies: Dubai and Abu Dhabi attract hedge funds and crypto ventures, Emirati families explore tokenized real estate, ESG values gain traction, and Abu Dhabi plans a $2 billion Binance investment via USD1 stablecoin.
The Gulf’s next generation of heirs is reshaping centuries-old family fortunes, steering capital away from traditional real estate and local businesses toward crypto and hedge funds. This generational pivot reflects both a desire for diversification and a readiness to embrace global financial innovation.
Kanoo twins spark a family shift
Abdulaziz and Abdulla Kanoo, 28-year-old twins from Bahrain’s Kanoo family, were among the first to push their family office into Bitcoin in 2020. Initially met with skepticism by investment head James Burke and resistance from older relatives, their proposal eventually won approval. A small Bitcoin allocation was made and later sold at a profit, validating their vision. Since then, the family office has pursued digital assets through hedge fund structures, balancing exposure with risk management.
From family office to client-facing firm
Building on this momentum, the twins launched a separate digital asset firm to serve external clients and other family offices. Their move mirrors a broader regional trend: wealthy Middle Eastern families are increasingly handing control to younger heirs and professional managers. Global banks such as Citigroup, Barclays, and Deutsche Bank are expanding Gulf wealth divisions to capture a share of the estimated $1 trillion in generational wealth transfers.
Hedge funds find fertile ground in Dubai and Abu Dhabi
Dubai has emerged as a hub for hedge funds, hosting more than 70 firms, while Abu Dhabi attracts global players like Brevan Howard and Marshall Wace. This local presence has empowered Gulf family offices to conduct their own due diligence and make diversified bets. Edwin Lawrence of Nettlestone Capital Advisors notes that $5 million allocations can significantly impact smaller hedge funds, underscoring the region’s growing influence.
Emirati families embrace tokenization and ESG values
Momentum continues to build as Emirati families explore tokenized real estate and digital yield strategies. Apex Group’s Bhaskar Dasgupta highlights rising hedge fund allocations and strong crypto appetite. Younger heirs are also infusing portfolios with new values: Kevin Chalhoub of the Chalhoub luxury group promotes ESG investing and operates an EV rental business in Dubai.
Meanwhile, Abu Dhabi prepares a $2 billion investment into Binance via USD1, a stablecoin tied to World Liberty Financial. Experts suggest the UAE could become a haven for crypto ventures seeking relief from the EU’s MiCA regulation.
