Next-gen heirs in the Gulf are steering centuries-old fortunes toward crypto and hedge funds, signaling a break from the traditional focus on real estate and local businesses.
Key Takeaways:
- Gulf heirs are shifting family wealth from real estate to crypto and hedge funds.
- The Kanoo twins led one of the region’s earliest family office Bitcoin bets in 2020.
- Major banks and hedge funds are targeting the Gulf as younger generations seek diversified portfolios.
Leading the charge are Abdulaziz and Abdulla Kanoo, 28-year-old twin brothers from Bahrain’s storied Kanoo family, who pushed their family office to back Bitcoin in 2020, according to a Tuesday report by Bloomberg.
Their proposal, initially met with skepticism by the family’s investment head James Burke, was eventually approved by the Kanoo Group’s committee, despite resistance from older members.
A small Bitcoin allocation was made, and later sold at a profit. Since then, the family office has continued investing in digital assets, now opting for hedge fund structures to manage risk and exposure.
Gulf Heirs Launch Crypto Firm to Serve Family Offices and External Clients
The twins now operate a separate digital asset firm, offering crypto investment services to external clients and other family offices.
The move comes as wealthy Middle Eastern families are handing increasing control of their capital to younger generations and professional managers, reshaping portfolios that once favored conservative, tangible assets.
Banks like Citigroup, Barclays, and Deutsche Bank are racing to scale their Gulf wealth divisions to tap into an estimated $1 trillion in wealth transfers expected across the region.
Dubai has become a magnet for hedge funds, with over 70 now operating in the city. Abu Dhabi is home to global players like Brevan Howard and Marshall Wace.
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This local presence has opened doors. Edwin Lawrence of Nettlestone Capital Advisors says Gulf family offices now conduct their own due diligence and prefer diversified bets, with $5 million allocations making a real impact on smaller hedge funds.
Still, the shift isn’t frictionless. Middle Eastern portfolios remain more conservative than their Western counterparts, with larger holdings in liquid assets and real estate, according to HSBC and Campden Wealth.
Governance structures often include multiple layers of checks, reflecting generational divides. “As a family business, you have a lot of layers of governance and risk that you need to go through,” Abdulla Kanoo said.
Emirati Families Embrace Crypto, Hedge Funds, and Tokenized Assets
However, momentum is growing. Apex Group’s Bhaskar Dasgupta notes rising hedge fund allocations and strong crypto interest among Emirati families. Tokenized real estate and digital yield strategies are also gaining traction.
Beyond profit, younger heirs are bringing new values to the table. Kevin Chalhoub, 31, of the Franco-Syrian Chalhoub luxury group, champions ESG investing and runs an EV rental business in Dubai.
The move comes as the UAE continues to position itself as a regional hub for blockchain innovation and crypto finance, with regulatory clarity attracting major global players.
As reported, a state-backed investment firm in Abu Dhabi is set to make a $2 billion investment into crypto exchange Binance using USD1, a stablecoin developed by World Liberty Financial — a crypto venture closely tied to the Trump family.
Experts claim the UAE is poised to become a key destination for crypto and stablecoin ventures seeking refuge from the European Union’s (EU) newly implemented Markets in Crypto-Assets (MiCA) regulation.
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