High-net-worth individuals (HNWIs) in the area are predicted to leave their descendants an astounding AED3.67trn (£820m, $1trn, or €980m) in the upcoming years, according to the report. This significant change sheds light on the complex issues of intergenerational wealth transfer in addition to emphasizing the value of careful legacy planning. Families need expert help to handle the complexity of cross-border commercial operations, international legalities, and tax issues at this critical point.

Wealth management is well-suited to the United Arab Emirates due to its strong economy, lack of infrastructure debt, and attractiveness to a global audience. Nevertheless, there are many challenges in the way of an effective wealth transfer. According to a Lombard Odier survey, 87% of Middle Eastern HNWIs think their family businesses are ready for a smooth transfer of wealth, while just 24% have created thorough estate planning. This is a startling disparity. The current transactional and compartmentalized service model used by regional wealth advisors is insufficient to tackle the range of issues raised by the projected reallocation of wealth.

Kidbrooke has investigated the particulars of legacy planning in the United Arab Emirates, examining how financial advisers can use technology to help their clients plan and realize their legacy goals during this big wealth shift.

Wealth transfer is a universally difficult procedure that is frequently tarnished by clients' unwillingness to talk about legacy preparation. The CEO of HSBC's Wealth and Personal Banking, Nuno Matos, describes the emotional conundrum that entrepreneurs confront and compares having the succession talk to giving up one's identity. Furthermore, as Sean Kelleher, CEO of Mondial Dubai, pointed out, age groups place differing degrees of emphasis on Sharia-compliant succession planning, which makes it impossible to overstate.

Furthermore, many in the UAE are still unaware of the extent of the regulatory and tax ramifications, as stated by Hannah Greenwood, managing director of Finsbury Associates. The discussion of legacy planning is made more difficult by the intergenerational relationships and the possibility of entitlement dispute. The announcement by the Dubai International Financial Centre (DIFC) to open a worldwide family business and private wealth center in August 2022 is a push by the government to promote proactive legacy planning in order to accommodate the region's increasing number of expatriates and diverse religious population.

Kidbrooke outlined the obstacles preventing legacy and succession planning services in the United Arab Emirates from progressing further, emphasizing the need for global experience and a cooperative strategy amongst financial service providers.

There is potential in the concept of a hybrid advice model that combines digital platforms and in-person consultations in the wake of the pandemic. With the advent of unified financial analytics, like those offered by Kidbrooke®, wealth managers are now equipped with the means to initiate conversations about legacy planning while providing a thorough understanding of their clients' financial environments.

Kidbrooke® has unveiled KidbrookeONE, an analytics suite that can simulate and project financial results, helping to help create customized estate planning objectives. This technological prowess helps to clarify the ramifications of different wealth planning techniques and encourages open communication between wealth holders and their successors, which may help to reduce family conflicts.

The collaborative efforts in the United Arab Emirates are exemplified by HAYAH Insurance, an insurer situated in Abu Dhabi, which has teamed with Kidbrooke® to utilize KidbrookeONE's simulation capabilities to improve its investment planning services. This collaboration demonstrates the efforts being made to incorporate sophisticated analytics into financial planning in order to meet the needs of a customer base that is increasingly tech-savvy.