Market Dynamics Across Family Offices, Private Equity, and Advisory Firms

Overview:

• GCC family-owned conglomerates are undergoing a significant shift, balancing legacy values with modern governance and institutionalization to remain competitive in a rapidly diversifying economy. 
• Family offices in the region are increasing their allocation to alternatives, infrastructure, and direct private equity deals to generate long-term value beyond traditional assets. 
• Consultancies and private equity firms are expanding their footprint in the GCC, providing digital transformation, succession planning, and growth advisory services to professionalize operations. 

Market Size & Growth 

• Single-family offices globally manage over US$4.67 trillion, with more than 50% located in EMEA—including the GCC. 
• UAE’s economy is projected to grow by 4.6% in 2025, while Saudi Arabia’s non-oil sector is expected to expand at 3.6% CAGR through 2027. 
• GCC private equity fundraising remains active, especially for platform-based deals and infrastructure projects; private equity funds globally are seeing a 24% YoY decline, highlighting a regional outlier. 

Key Growth Drivers

• Generational transition is driving internal reform across family businesses, fueling demand for governance structures and professionalized management.
• Increased allocation to private credit (32%) and infrastructure (30%) shows a shift in family office strategy towards real assets and predictable cash flows. 
• Governments are encouraging private sector involvement in infrastructure, health, and digital sectors through PPPs and economic diversification mandates. 

M&A Overview

• Direct investments now make up 10% of total family office portfolios, a large portion of which are private deals or JV-led acquisitions in target sectors. 
• GCC private equity investors are increasingly targeting local family businesses for acquisition, joint ventures, and buy-and-build platforms. 
• Succession-led restructuring is unlocking M&A activity as families look to monetize non-core assets and refocus on strategic verticals. 

AI’s Role

• Family offices are seeking AI-powered private market analytics, with 75% of respondents citing it as a key gap in their current tools. 
• Consultancies are deploying AI for digital transformation advisory, especially in sectors like government services, utilities, and telecom. 
• AI is supporting succession planning, risk analysis, and governance scenario testing across multi-generational business groups. 

Competitive Landscape

• Family businesses in the GCC face rising pressure from professionalized corporates and global investors with more scalable governance models. 
• Regional consultancies and global firms like Accenture are competing to advise transformation projects in energy, telecom, and financial services. 
• Private equity firms are leveraging downturns in global fundraising to enter GCC markets, capitalizing on family business restructuring and regional growth stability. 

‍

Sources: BlackRock, withintelligence, siglobal, worldbank, pwc, accenture.com

‍