UAE family offices vow to step up fight for climate change along their path to new wealth creation

Family offices in the UAE have vowed to step up their fight against climate change as they embarked on a new journey of wealth creation at the highly anticipated 20th Anniversary Ritossa Family Office Investment Summit, which was held last week in Dubai.

The event was a masterful gathering that attracted family offices, Sheikhs, royal family members, investors, business leaders and entrepreneurs.

The high-level discussions focused on the theme “Uniting Together to Invest and Create a Better Future.” Previous Summits have raised significant amounts of investments for leading global start-ups, entrepreneurs, funds, and philanthropic endeavors and the latest Dubai Summit promises to exceed all expectations.

“So much has transpired since our inaugural Summit took place in Dubai in 2016. From the early cryptocurrency discussions at our 2017 Miami Summit, to the historic visit to Dubai by a delegation from Israel, the grand occasion of EXPO 2020 Dubai, and more, the past few years have been a whirlwind of new developments,” said Sir Anthony Ritossa, Chairman of Ritossa Family Office & Host of Ritossa Global Family Office Investment Summits, UAE.

“I would like to deeply thank Sir Anthony Ritossa, a great man who helps a lot of projects and men and women to do business together for a better world. The 20th Anniversary Ritossa Global Family Office Investment Summit allowed ADMCS to reach new high-level investors and raise appreciated funds,” said Nicolas Sarrut, Founder and CEO of ADMCS.

Summit discussions focused on technology, life sciences, healthcare, biotech, education, philanthropy, digital assets/blockchain/cryptocurrency/DeFi, energy, water, data privacy, succession planning, climate change, sustainability, real estate, hospitality, media, and more.

Key takeaways included:

The UAE is Booming

The GCC and UAE are experiencing significant growth despite inflation and recession concerns elsewhere in the world. This is due largely to record-setting government revenues which are being spent on priority areas that support social welfare. The region’s strong government policies and initiatives support the business and investment environment and point to the fact that in the UAE almost anything is possible. The UAE is a trading hub with many fast-growing economies and sectors such as manufacturing, aviation, HealthTech, solar energy, real estate, and hospitality.

Family Offices Fight Against Climate Change

Family offices have a keen sense of responsibility when it comes to addressing climate change in support of future generations. We are at a profound moment in time where climate change is an existential threat. Overall, we have a broad understanding of what needs to be done and we need to act fast to save the planet, attendees agreed. There are new commercially viable processes for the cultivation of micro algae for biofuels and related carbon credits that will make net-zero emissions goals a reality, for example. 

Investor Insights for 2022 & Beyond

Macro factors that impact global investors include the fact that Europe is experiencing serious repercussions from the Ukraine War with no near-term solution evident at this point. Speakers also noted that Africa presents great opportunities in areas such as fintech, data, and digital transformation due to its fast growth trajectory. Because we are entering a new world geo-politically, it is essential for investors to re-examine their portfolios to ensure they are invested in areas that present optimal growth opportunities such as private equity and direct investments.

Synthetic Biology - Solving the Global Food Protein Gap

New synthetic biology technologies are available that provide clean, sustainable, scalable, and healthy food alternatives. This is helping to feed more people and bridge the food gap with milk and dairy proteins that are a global game changer with massive potential to support human health.

Digital Assets Represent the Future

Mining will increasingly focus on renewable energy as the cryptocurrency sector seeks to expand its environmental focus. In today’s global bear market, valuations are reasonable, and the time is right for long-term investors to invest in digital assets. Companies that adapt well are positioned to have an incredible future. Family offices remain bullish on cryptocurrency.

Hong Kong + UAE Partnerships

The UAE is an important region for Hong Kong as it continues to evolve into various industries. Historically viewed as a center for financial services, Hong Kong is more committed than ever to supporting industries such as aviation and manufacturing. As Hong Kong’s prominence on the world map continues to expand,  the UAE will play an important role in its future.

Secrets of Successful Family Businesses

Setting up and running a family business is best pursued with a strategy whereby family members work hard to earn their position. A structure where each company is run with the discipline of a public company is ideal. Governance, succession planning, oversight, and strict rules are essential to long-term family business success.

Carbon Regeneration, Green Bonds, Impact Investing

The mission to go beyond carbon neutral is supported in the UAE and beyond by green bonds that support carbon regeneration.  This represents one type of impact investment. Other opportunities are focused on water, air, energy, and more.

Geopolitical Friction Impacts the World

The war in Ukraine faces non-bridgeable conflicts and an end is not in sight. Questions exist as to how it may escalate, and chances are things will get worse before they get better, unfortunately. In addition, the US-China rivalry is a challenge. America’s politics are depolarized, supply chain issues are problematic, travel issues exist, and there’s a strong trend toward deglobalization. Navigating these challenges is top of mind for global family offices.

Family Office Strategies to Build Wealth

Family offices are seeking quality deals to add to their investment portfolio. Europe is difficult now due to the UK real estate market’s challenges so family offices there are more defensive at present. Families are actively re-allocating capital to invest in companies that to build wealth and there are numerous great opportunities globally. The UAE is a lighthouse of safety for the world. Co-investing continues to expand, and family offices are continually thinking about where to invest, the best types of deals, and what lessons they have learned in past years. Attendees stressed the importance of having the right people on the team and carefully considering valuations prior to making an investment decision.

The Future of Healthcare

Discussion points included - good medicine is based on good data, we need to do more to ensure that more populations are represented in clinal trials, and medicine is becoming more personalized. Trends include more emphasis on telehealth, home care, the ability of data to drive precision medicine, 4D printing, expanded studies of the human brain, digital stethoscopes, gene editing, nano bots, plaque busting, and an array of solutions to prevent and detect disease before it starts.

Digital Assets + Financial Institutions

We have learned a lot from the past and are stronger in terms of our knowledge base regarding digital assets. Bitcoin has followed a classic textbook cycle. Additional collaboration is needed between digital assets and traditional finance. Blockchain for business adds transparency and saves time so it is a game changer for relevant industries – although it cannot be expected to solve all the world’s problems. A big step for the asset class will come when it is fully regulated. Additional challenges are the result of the sector’s rapid growth trajectory.

Female Empowerment Trends

Female business leaders share a vision for sustainability, a commitment to mentoring young women, and a passion for serving as positive role models. In Saudi Arabia, the government is a strong supporter of female empowerment. Overall, the group agrees that everyone should be able to reach his or her full potential without bottlenecks standing in the way. There are structural changes needed to support women who seek funding from VCs and other outside sources, however.

Real Estate + Hospitality Present Compelling Investment Opportunities

Headwinds include rising interest rates and increasing prices, yet there are many motivated sellers and opportunities to acquire or assume loans at attractive rates. Europeans are flocking to the United States to purchase real estate due to instability at home while the U.S. is showing an aggressive response to inflation. Real estate is a great hedge against inflation, so timing is optimal for investing in this asset class.

Water – Our Most Precious Resource

Today, only 0.3% of all water is usable, resulting in 400 million people experiencing a water shortage daily. How are we going to manage this precious resource, and how should investors allocate resources to contribute to a more sustainable world? It is our responsibility to make a difference; otherwise, we will experience a water shortage daily and more plastic in the ocean than fish.