• news-banner

    Expert Insights

Wealth Management in Qatar

The topic of wealth management is neither new nor unfamiliar to Qatar or the Middle East generally.  It has, however, risen to greater prominence following the pandemic and is increasingly top-of-mind for high-net worth individuals and family businesses alike.

The legacy of family businesses often hinges on the ability to preserve and grow wealth across generations. However, the absence of a robust structure for managing family wealth can lead to its gradual erosion or even catastrophic loss. This phenomenon, commonly referred to as "wealth destruction", occurs due to several interconnected factors:

Intergenerational Conflicts

  • With each passing generation, the family often expands, bringing diverse views on business strategy, investment preferences, and governance. Conflicting interests can lead to infighting, often resulting in costly legal disputes and fractured leadership, ultimately destabilising the family's wealth.

Lack of Succession Planning

  • The absence of a clear succession plan leaves a vacuum in leadership when key family members/decision-makers retire or pass away. Without a designated successor or a structured process, businesses struggle to maintain continuity, causing disruption that may threaten to diminish the company's value.

 Investment Mismanagement

  • Families without comprehensive governance structures and clear investment policies risk misallocating their resources in high-risk or underperforming ventures. A lack of diversification can expose the family's wealth to undue market volatility, economic downturns, or ill-timed business cycles.

Dilution of Ownership

  • As family trees branch out, wealth and control become diluted among heirs who may prioritise immediate financial gains over the long-term health of the business. This can lead to hasty asset sales or fragmentation of ownership that weaken the family's ability to control and preserve wealth.

These challenges underscore the importance of establishing a clear governance framework for family businesses. By leveraging strategic structures such as family offices, trusts, and holding companies, families can safeguard their legacy, ensure continuity, and reduce the risks of wealth destruction across generations.

In an attempt to address these challenges, the Qatar Financial Centre (QFC) has announced that it will provide the regulatory environment and advisory services necessary to guide families in creating these structures, thereby securing their wealth for the future.

The soon to be established Qatar Financial Centre Family Office promises to offer a common-law jurisdiction (based on English Law) in which families may structure their assets in companies, trusts and foundations. Such structures will make it clear who has executive authority and how stake holdings are to be managed.

In the event of a dispute, the Qatar International Court and Dispute Resolution Centre (composed of world-renowned judges) will have jurisdiction over such matters unless the parties agree to arbitration or mediation.  

As the QFC emerges as a trusted hub for family businesses, the creation of a comprehensive framework that not only safeguards but enhances intergenerational wealth is critical. By adopting a sound legal structure coupled with reliable dispute resolution mechanisms, family companies can confidently manage their assets with clarity and privacy. This strategic approach differentiates Qatar from other jurisdictions, offering family businesses a clear path to growth while protecting their legacy. The regulatory environment and advisory services of the QFC promise a secure future, enabling families to focus on what truly matters: fostering harmony and preserving their hard-earned wealth for generations to come.

Our thinking

  • IBA Annual Conference 2024

    Charlotte Ford

    Events

  • "Has anyone seen my cat?" - Pet-Nups and Pet Disputes between Unmarried Couples

    Jessie Davies

    Quick Reads

  • The Africa Debate: Africa’s role in a changing global order

    Matthew Hobbs

    Quick Reads

  • Divorce called off: McIlroy reconciles on the eve of the US open

    Sophia Leeder

    Quick Reads

  • Ultimate Beneficial Ownership

    William Reichert

    Insights

  • Bloomberg quotes Dominic Lawrance on pledges to scrap preferential tax treatment for non-doms

    Dominic Lawrance

    In the Press

  • ESG Reporting for Public and Listed Companies

    William Reichert

    Insights

  • Renewable Energy

    William Reichert

    Insights

  • Is the horizon level? Current updates and predictions for Competition Law in the UAE

    William Reichert

    Insights

  • Are Yorkshire pudding toppings a reason for divorce? Fortunately not anymore: no fault divorce – over 2 years on

    Hannah Owen

    Quick Reads

  • The Use of Experts in International Arbitration

    Peter Smith

    Insights

  • The Telegraph quotes Sarah Jane Boon on potential issues around Labour’s pledge to levy VAT on private school fees

    Sarah Jane Boon

    In the Press

  • Spear's quotes Sarah Jane Boon on issues around VAT on private school fees

    Sarah Jane Boon

    In the Press

  • Hubbis interviews Ivan Lu on multi-jurisdictional family wealth and succession

    Ivan Lu

    In the Press

  • Switzerland: Revision Of The International Succession Law

    Grégoire Uldry

    Insights

  • The Telegraph quotes Dominic Lawrance on Labour’s proposed expansion of rules governing trusts

    Dominic Lawrance

    In the Press

  • How is trust reporting under the Register of Overseas Entities changing after 4 June 2024?

    Jack Carter

    Insights

  • Relocation to Italy: Italian Lump Sum Tax Regime

    Nicola Saccardo

    Insights

  • Disputes Matters: International Arbitration

    Thomas R. Snider

    Podcasts

  • A Glimpse into Saudi Arabia's Tourism and Leisure Vision 2030 and Beyond

    Reem Al Mahroos

    Quick Reads

Back to top