HNWI from MENA Seek Investments in Islamic Assets

Younger high-net-worth individuals (HNWIs) in the Middle East are more likely to seek investments that reflect their values, such as sustainable and Sharia-compliant assets, compared with their older counterparts, The National reports.

A survey by Geneva-based wealth and asset manager Lombard Odier found that about 91 percent of respondents under the age of 40 had already invested in Islamic assets, while 88 percent planed to increase their allocations to sustainable assets.

The company polled 300 HNWIs, from the UAE, Saudi Arabia, Kuwait and Oman. The respondents have a net worth of least $1 million in investable assets.

[There is] a consensus emerging between older and younger investors in several areas, but specifically in values-based investing. The next generation’s enthusiasm for Islamic and sustainable investing … is very encouraging.

said Arnaud Leclercq, head of new markets at Lombard Odier.

73 percent of respondents believe they can generate improved returns through ventures that drive the transition to a net-zero economy, while 74 percent say new business opportunities will be found in sustainable sectors in the region.

While the families of 85 percent of young respondents share traditional Middle Eastern values based on religious or cultural principles, 31 per cent say those traditional values are updated for the present day,”

Lombard Odier said, adding that Islamic values are also starting to be reflected in the younger generation's investments.

This contrasts with older investors, 79 per cent of which say their values are exclusively traditional.

In May, a separate survey by Lombard Odier found that 85 per cent of HNWIs in the Middle East intended to increase their exposure to environmental, social and governance (ESG) and sustainable investments.