Markets have faced heightened geopolitical and economic uncertainty over the past year as investors recalibrate their investment portfolios. Investment priorities are shifting with a volatile macroeconomic environment.
Finance Middle East spoke with Mashreq’s Managing Director and Head of Private Banking, Vipul Kapur, on the bank’s priorities, portfolio allocation amongst investors and upcoming areas of growth for UHNWIs in the Gulf.
Balancing Capital Savings with Returns
Our approach is anchored on three priorities: protecting capital, deploying risk selectively, and maintaining diversification. We are actively repositioning client portfolios towards high-quality, low-volatility assets to generate attractive yields while preserving capital. At the same time, we are adopting a dynamic allocation approach, maintaining liquidity and tactically deploying capital to benefit from evolving market conditions.
For growth, we focus on high-conviction, thematic opportunities across public and private markets, alongside income-focused strategies. We are also increasing exposure to GCC opportunities, reflecting strong regional fundamentals. Overall, this ensures client portfolios remain resilient, while being well-positioned to capture selective opportunities and deliver sustainable, risk-adjusted returns.
Portfolio Allocation Shifts Among UHNWIs in the GCC
We are witnessing a structural shift in how ultra-high-net-worth (UHNW) clients across the GCC are constructing portfolios, driven not only by higher rates and geopolitical complexity, but by a clear move towards institutional-grade investing. The emphasis has moved from pure growth to resilience and income, with fixed income, sukuk, and private credit now forming a core foundation.
At the same time, alternatives have transitioned from opportunistic allocations to strategic pillars, reflecting the need for uncorrelated returns and long-term value creation.
Regionally, the GCC is being re-rated, with clients increasing exposure to capturing strong fundamentals and diversification momentum, while remaining selective across global emerging markets. Real estate is also evolving into a more disciplined, income-focused and professionally managed allocation.
Crucially, portfolios today are more dynamic and liquid, enabling clients to deploy capital tactically and benefit from shifting market conditions. This is underpinned by a more institutional approach to risk: through active hedging, stress testing and scenario planning.
Ultimately, the shift is clear: clients are building more resilient, forward-looking portfolios, designed not just to navigate volatility, but to consistently capture opportunity across cycles.
Alternative Asset Classes and Investor Risks
We see the most compelling opportunities in alternatives across private credit, infrastructure and private equity. Private credit stands out, benefiting from structural market opportunities and attractive income with built-in downside protection. Infrastructure and real assets offer resilient, inflation-linked cash flows supported by enduring global and regional themes.
Hedge funds are increasingly relevant as diversifiers in a more volatile environment, and selective opportunities are emerging in niche real estate sectors such as logistics and data infrastructure.
However, outcomes in alternatives are highly dispersed. Success depends on disciplined manager selection and a clear understanding of illiquidity, valuation dynamics and execution risk.
Mashreq Private Banking
At Mashreq Private Banking, our model is fundamentally client-led, designed to deliver clarity, confidence and continuity through all market conditions.
In periods of volatility, this becomes even more critical. We move beyond transactional, product-led interactions to offer a fully integrated, forward-looking approach, aligning investment strategy with clients’ liquidity needs, risk appetite and long-term legacy objectives. Our clients benefit from continuous engagement, proactive insights and positioning ahead of market shifts, enabling them to stay invested with conviction rather than react to short-term noise.
A core differentiator is our focus on the client experience during uncertainty, helping manage behavioural risk, reinforcing discipline and providing clear, timely guidance when it matters most. Ultimately, our approach is about delivering highly tailored, outcome-driven solutions that evolve with our clients’ needs, ensuring they are not only safeguarded, but consistently well-positioned to capture opportunities.
Investment Priorities of the Next Generation of Wealth Holders
Founders often begin these discussions focused on assets, returns and familiar regional opportunities.
That’s a natural starting point. That conversation soon broadens to global horizons and, more importantly, to what wealth is meant to stand for in the long term.
Very quickly, the focus shifts from markets to transition. As wealth moves across generations, families recognise the need for clearer governance, defined roles and professional structures. It’s no longer just about preserving capital but about building frameworks that allow a legacy to endure and evolve over time.
Upcoming Risks and Strongest Areas of Growth
Over the next 12–18 months, we see a complex but opportunity-rich environment, shaped by policy uncertainty, geopolitical shifts and structural change. Key risks center on interest rate volatility, geopolitical fragmentation, and uneven global growth, reinforcing the need for diversification, quality and disciplined risk management.
At the same time, opportunities are strengthening across fixed income, private credit and the GCC, alongside long-term themes such as technology and artificial intelligence (AI). We expect three defining trends: alternatives becoming core, a continued shift towards income and further institutionalisation of UHNW portfolios. Ultimately, clients who remain disciplined and forward-looking will be best positioned to navigate volatility and capture selective opportunities.
Mashreq, Dubai and Wealth Management
Dubai is not only emerging as a global wealth hub; it is redefining the future of wealth management.
Its combination of stability, strategic connectivity, and a rapidly institutionalizing financial ecosystem is positioning it as a leading destination for global capital and a center of gravity for UHNW and family office activity. Increasingly, we are seeing Dubai evolve from an safe haven into a sophisticated ecosystem for wealth structuring, investment and intergenerational planning. Against this backdrop, Mashreq is positioning itself at the forefront of this shift.
Our strength lies in combining deep regional insight with global capabilities, delivered through a highly personalised, relationship-led model. As client needs become more complex, we are expanding our focus on alternatives, integrated banking solutions, and digital first approach, enabling clients to seamlessly access global opportunities while anchoring their portfolios in the region’s growth story.
Ultimately, as Dubai continues to attract and institutionalise global wealth, differentiation will come from enhanced digital experience, access and client engagement—areas in which we are actively investing to lead.
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