The Next Generation of Wealth: How Gen Z and Millennials Are Changing Private Banking
An estimated $84 trillion is set to pass between generations over the next two decades, according to an October 2026 global wealth trends study. The DIFC’s February 2026 Global Wealth Outlook puts the longer-run intergenerational transfer at $124 trillion by 2048. Dubai and Abu Dhabi now rank 8th and 10th among the world’s preferred cities for next-generation wealth - individuals under 40 who have inherited or built significant fortunes - and are the only Gulf cities on the list. The client base is getting younger. Its expectations already look different.
Advice Is Not Being Abandoned. It Is Being Redefined.
CFA Institute’s March 2026 Next-Gen Investors research, covering more than 2,400 affluent and high-net-worth investors across six markets including the UAE, found that over 90% of wealthy Gen Z and millennial investors use some form of paid financial advice. Nearly 70% of those with a paid adviser interact with them at least monthly. The channels split by generation: 58% of millennials access advice through an investment firm, wealth manager or family office, while 43% of Gen Z rely on robo-advice only. Human advisers remain the single most trusted source of guidance. The model next-gen clients want is hybrid - human judgement, delivered through technology-enabled personalisation.
Trust Is Now Measured, Not Assumed
“Trustworthy” and “ethical” rank as the most important qualities when young investors choose an adviser. They define trust through measurable behaviour: transparency, credentials, cybersecurity, empathy and cost clarity. For private banks, that moves fee and performance transparency from a disclosure exercise to a retention lever. Digital integrity - protection against scams, impersonation and data compromise - is no longer back-office. It is part of the relationship itself.
Portfolios Are Moving Beyond Stocks and Bonds
A June 2026 study of wealthy investors found that Gen Z and millennials aged 21 to 45 hold 32% of their portfolios in stocks, against 58% for Gen X and Boomers. Alternatives account for 15% of younger portfolios, and 88% expect to allocate more over the next few years. 67% believe traditional stocks and bonds can no longer deliver above-average returns. 58% currently own crypto. CFA Institute’s data adds a behavioural layer: 55% of young HNW and VHNW investors say fear of missing out drives their decisions, particularly in emerging assets. That combination puts suitability, custody and governance at the centre of next-gen portfolio construction, alongside access to private credit, infrastructure, secondaries and tokenised assets.
AI Is Already Part of the Relationship
Around a third of young investors have used generative AI for financial education. 47% use AI to research companies or markets, and 87% are comfortable with advisers using AI to help manage their portfolios. Yet 65% still prefer to receive investment advice from a human. The competitive edge lies in pairing the two: AI for research, reporting and risk intelligence, the relationship manager for judgement, behavioural coaching and continuity through volatility.
The UAE Is Where Next-Gen Wealth Is Choosing to Build
Location decisions are becoming a core component of wealth planning, and the UAE’s financial centres are absorbing the shift. DIFC now hosts more than 1,289 family-related entities, the largest such ecosystem in the country. In Abu Dhabi, ADGM reported a 54% rise in assets under management in H1 2026, with fund and asset managers up 23% to 190 and funds managed from the centre up 32% to 276. For families preparing the handover, the practical work is structural: choosing between ADGM, DIFC and RAK ICC foundations, trusts and corporate vehicles, and building governance that keeps the next generation aligned rather than simply informed.
Join the Conversation in Abu Dhabi
Learn more from top industry experts and decision-makers at The Private Wealth & Funds Forum on 10 December 2026, Marriott Hotel Downtown, Abu Dhabi.
Senior contributors from Emirates NBD, Bank of Singapore, Union Bancaire Privée, Standard Chartered Bank, State Street Investment Management, Hamilton Lane, Apex Group, RAKBANK, BankDhofar, RAK ICC and more will address next-gen client expectations, succession and governance, digital advisory and modern portfolio construction across the full forum agenda.
For sponsorship or registration enquiries: info@qubevents.com
By: Zinah Abdaki, CMO at QUBE Events
Sources: CFA Institute, Next-Gen Investors: A Guide for Wealth Managers and Financial Advisers (March 2026) · DIFC, Global Wealth Outlook: Rethinking Growth in a Changing World (February 2026) · ADGM, H1 2026 Performance Update (September 2026) · Bank of America Private Bank, Study of Wealthy Americans (June 2026) · Savills, Spotlight on Wealth Trends (October 2026)
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