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Middle East Set For $1 Trillion Generational Wealth Transfer By 2030, With Technology At The Forefront

by THEFUTURE.TEAM

January 30, 2025

The Middle East is set to witness an unprecedented $1 trillion transfer of wealth by 2030, with High Net Worth individuals (HNWIs) in the UAE experiencing significant growth in assets, which have surged by 20% since 2022 to hit $700 billion. This historic wealth transition is made all the more complex by the increasingly diversified nature of assets, which now encompass everything from traditional real estate and investments to digital assets like cryptocurrency.

Emerging digital technologies such as artificial intelligence (AI), blockchain, smart contracts, and tokenization are offering promising solutions to streamline and secure this generational wealth transfer, addressing the rising demand for transparency and efficiency in asset distribution. According to Mohammad Alblooshi, CEO of DIFC Innovation Hub, “We are at the crossroads of a monumental generational wealth shift in the Middle East, at a time when wealth portfolios are increasingly complex.”

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Increased Complexity In The Inheritance Process

Despite the potential of new technologies, the wealth transfer process remains incredibly complicated. A recent report from DIFC Innovation Hub, Julius Baer, and Euroclear reveals that only 24% of HNWIs have comprehensive estate plans in place. Many families are overwhelmed by the task of managing diverse assets and the allocation process, with over half of them citing the challenge of organizing wealth across large families as too time-consuming and complex.

Historically, inheritance was limited to physical assets like land or gold, but today’s wealth is spread across multiple asset classes, including real estate, investments, art, and even crypto. The changing nature of wealth demands a corresponding evolution in the processes that support it, creating the need for a new ecosystem to manage this growing complexity.

Human Factors Hampering Wealth Transfer

The wealth transfer system, however, faces significant barriers due to human challenges. A substantial 73% of wealth holders are reluctant to engage in discussions about legacy planning, even with their most trusted advisors, which can delay or complicate wealth transfers. Over half of all wealth transfers face delays due to insufficient preparation, legal hurdles, and probate processes that can extend up to 12 months. This often results in wealth being temporarily inaccessible, subjected to legal scrutiny, and incurring hefty fees, which weakens the financial legacy passed on to future generations.

Digital Technology As A Key To Preserving Wealth

To address these challenges, wealth managers in the Middle East must rethink how they approach the transfer of assets. Digital innovations, particularly blockchain and AI, are beginning to reshape the inheritance landscape by offering greater visibility, faster transfers, and fewer obstacles. As Alireza Valizadeh, CEO of Julius Baer Middle East, explains, “The onset of digital assets calls for a new approach to legacy management that promotes readiness and reduces friction.”

The Role Of Regulation In Building Trust

For these new technologies to gain widespread acceptance, regulatory support will be crucial. A unified approach between wealth managers, service providers, and regulators will help build a secure, scalable wealth transfer platform that not only protects assets but ensures equitable distribution, securing long-term financial stability for future generations.

As the Middle East moves toward a digital-driven future, these advancements will play a pivotal role in preserving wealth across generations.

The Decline Of Smartwatches: A Turning Point In The Wearable Tech Industry

by THEFUTURE.TEAM

March 13, 2025

For the first time in history, the smartwatch market is facing a significant downturn. Shipments are expected to drop by 7% in 2024, marking a major shift in a segment that has been growing steadily for over a decade. A report by Counterpoint reveals that while Apple still holds the top spot, its dominance is being challenged by a surge from Chinese brands like Huawei, Xiaomi, and BBK. Even as the overall market struggles, some companies are thriving.

The Big Picture: Why Smartwatches Are Slowing Down

Apple’s flagship products have long been the driving force in the smartwatch market, but even the tech giant is feeling the pressure. The company’s shipments are projected to fall by 19% this year, though it will remain the market leader. Meanwhile, brands from China are capitalizing on the shift, with Huawei showing an impressive 35% growth in sales, driven by the booming domestic market and a broad range of offerings, including smartwatches for kids.

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Xiaomi, too, is experiencing remarkable success, with a staggering 135% increase in sales. In contrast, Samsung is seeing more modest growth, up 3%, thanks to its latest Galaxy Watch 7 and Galaxy Watch Ultra series.

While some companies are succeeding, the broader market is facing headwinds. The biggest factor behind the overall decline is the slowdown in India, where consumer demand for smartwatches has stagnated. The segment is suffering from a lack of innovation and fresh updates, leaving many consumers with little incentive to upgrade their devices. Add to that market saturation, and it’s clear why many users are content with their current models. The Chinese market, however, is bucking the trend, showing 6% growth in 2024.

A Glimpse Into The Future

Looking ahead, the smartwatch market may begin to recover in 2025, driven by the increasing integration of AI and advanced health monitoring tools. As these technologies evolve, the industry could see a resurgence in demand.

Huawei’s Remarkable Comeback

Huawei’s impressive performance in the smartwatch space signals a broader recovery for the company, which has been hit hard by US sanctions. Once the world’s largest smartphone maker, Huawei’s business was decimated when it lost access to advanced chips and Google’s Android operating system in 2019. But in China, Huawei has maintained its dominance, with its market share growing to 17% in 2024.

This resurgence was partly driven by the launch of the Mate 60 Pro, a smartphone featuring a 7-nanometer chip developed in China. Despite US sanctions, the device surprised many with its capabilities, a testament to China’s rising investment in domestic semiconductor production.

In February, Huawei also unveiled its Mate XT foldable smartphone, the world’s first device to fold in three directions. Running on HarmonyOS 4.2, Huawei’s proprietary operating system, the phone further demonstrates the company’s resilience and ability to innovate despite international challenges.

Huawei’s smartwatch offerings are also catching attention, particularly the Huawei Watch GT 5 Pro, which launched in September of last year. With a premium titanium alloy design, a high-resolution AMOLED display, and impressive health tracking features, the GT 5 Pro has become a standout in the market, available to both Android and iOS users.

A Brief History Of The Smartwatch Revolution

The smartwatch market has had its fair share of milestones, but the real breakthrough came in 2012 with the Pebble, a Kickstarter-funded project that raised over $10 million. Pebble introduced the world to smartphone integration, app downloads, and long battery life, becoming the first truly mass-market smartwatch.

In 2013, Samsung entered the game with the Galaxy Gear, marking its first attempt at wearable tech. But it was Apple’s entry in 2014 that truly set the industry on fire. The Apple Watch’s sleek design, integration with iOS, and emphasis on health and fitness catapulted it to the top of the market, establishing a standard that many other brands would try to follow.

By 2021, the smartwatch industry had grown to over $30 billion in revenue, with annual growth reaching 20%. Yet now, it finds itself at a crossroads, with innovation stagnating and market saturation taking a toll.