< Previous20 May 2025law-middleeast.com SPOTLIGHT Drawing on over two decades of experience, Taylor Wessing’s Ronald Graham shares insights into the evolving world of private wealth in the Middle East FROM OIL FORTUNES TO DIGITAL ASSETS: A MANAGING PARTNER’S TAKE ON GUIDING THE GULF’S ELITE LME_May2025_ 20-25_Private Wealth_13594372.indd 20LME_May2025_ 20-25_Private Wealth_13594372.indd 2002/05/2025 06:3102/05/2025 06:31May 2025 21law-middleeast.com SPOTLIGHT The world's wealthy are more mobile and willing to move jurisdiction to live than ever before … We have seen an unprecedented number of high and ultra-high net worth families moving to the UAE The Middle East has a signifi cant concentration of the world’s wealth. For lawyers advising high-net-worth individuals (HNWI) and families in the region, success hinges on having a deep understanding of local cultural practices and emerging trends such as digital assets. In this article, Ronald Graham, the managing partner of Taylor Wessing’s Dubai offi ce and head of the fi rm's UK private wealth practice, draws on his experience advising clients in the Middle East since 2005. He discusses their unique legal considerations, and highlights the priorities, challenges, and opportunities shaping their wealth management strategies. What are the primary legal needs of HNWI and families in the Middle East? People often ask me this question, and honestly the needs of individuals and families in the Middle East are really the same as anywhere else in the world. First and foremost is to ensure that family wealth does not disrupt a harmonious and loving family. Asset protection, safety, confi dentiality and minimising tax exposure have become far more important in recent years as has a general awareness of succession and the need to consider and implement structures such as off shore trusts and local foundations to assist with the continuity of business ownership and to aff ect a smooth transfer of assets to future generations. Regional families of signifi cant wealth want to be low profi le in terms of wealth and extremely well advised on their assets, tax, and succession. How has the increasing focus on economic diversifi cation in the region impacted the private wealth sector? The regional economic diversifi cation has encouraged individuals and family offi ces to embrace the opportunity to diversify their investments away from traditional oil and gas and commodities into technology, alternative energy, LME_May2025_ 20-25_Private Wealth_13594372.indd 21LME_May2025_ 20-25_Private Wealth_13594372.indd 2102/05/2025 06:3202/05/2025 06:3222 May 2025law-middleeast.com SPOTLIGHT Taylor Wessing Dubai managing partner Ronald Graham hotels and hospitality, sports club ownership, life sciences and health care and e-commerce. It is a great achievement of the region to have moved from one where new business concepts were always imported to one where we now see fi ntech businesses expanding globally and Dubai restaurant concepts moving into European key cities such as London and the US. The private wealth sector is often better placed to adapt and move to embrace these opportunities than institutional funds. I also feel that the region's patent enthusiasm for economic diversifi cation is to be commended and is well supported by the local private wealth sector. We have every reason to believe this will continue. What role do cultural and religious considerations play in structuring private wealth in the region? These considerations are of great importance in the region. You cannot be a private wealth adviser in the region without a good understanding of Shariah law. I was fortunate to have a local Muslim friend who has been kind enough to patiently teach the key aspects of the law and local culture to me and I feel that I now have a good understanding of the wishes of a Muslim family considering succession planning knowing what is possible under Shariah law. For any adviser to attempt to do this without a good understanding of Islam and local cultural practices is to be tone deaf in advising on such matters. It is also a privilege to be more aware of such matters. They impact not just on generational transfer but suitability of family structures, governance, investment classes and local business practices. LME_May2025_ 20-25_Private Wealth_13594372.indd 22LME_May2025_ 20-25_Private Wealth_13594372.indd 2202/05/2025 06:3202/05/2025 06:32May 2025 23law-middleeast.com SPOTLIGHT $996 The UAE is estimated to hold $996 billion in private wealth For any adviser to attempt to do this without a good understanding of Islam and local cultural practices is to be tone deaf in advising on such matters With the rise of digital assets and cryptocurrencies, what new legal challenges and opportunities are you encountering in your practice? This is an exciting but daunting area for private wealth advisers, particularly for asset and wealth managers and trustees. The interest from the private wealth community, particularly from second and third generation members to have at least some of the family wealth invested in digital and cryptocurrencies is signifi cant. As legal advisers, we have upskilled members of the team to be able to advise on the diff erent aspects of digital assets such as title, regulation, transfer etc. But I know that for wealth advisers it is a real challenge for them to advise on digital assets given the high volatility of this class and also for trustees, given their prudent fi duciary duties, to try to include crypto into a trust or foundation structure. That said, we are in a client service industry and as our clients demand these assets, we must all raise our games to be able to advise on them and how they are held. Personally, I do feel this is still a nascent asset class and the regulatory framework is evolving to protect (some would say to hinder) investors and owners. How is the growing emphasis on environmental, social, and governance (ESG) factors infl uencing private wealth planning and investment strategies? This is an interesting and highly topical area not least given very recent changes in the other direction in the US. We note the changes in the ESG and diversity policies of some of the largest companies, banks, and law fi rms with US exposure. That said, most families we work with have a varying interest in ESG matters. A few want all of their investments to be in sustainable businesses and regard ESG ratings are critical for investments—putting those priorities ahead of capital or income returns. However, the vast majority are still far more focused on a broad spread of risk and considerations such as yield and capital growth rather than ESG. ESG matters can also be considered part of an organisation's culture and as a result some organisations can be found to be too liberal to too focused on ESG LME_May2025_ 20-25_Private Wealth_13594372.indd 23LME_May2025_ 20-25_Private Wealth_13594372.indd 2302/05/2025 06:3202/05/2025 06:3224 May 2025law-middleeast.com SPOTLIGHT matters for some regional families. While the interest is defi nitely growing for ESG to be a factor in engagement and investment in truth it is often overplayed in the media compared to the reality in terms of signifi cance for individuals and families. What are some of the common sources of disputes in private wealth matters, and how do you advise clients on mitigating these risks? While families do usually work harmoniously with love and trust at the heart of the family ethos, we do sometimes unfortunately see disputes arising. The most obvious source of dispute, chaos and delay is where a patriarch passes without a will or any succession planning in place. Mitigation of this can be as simple as a will being in place for every jurisdiction where that person owns assets. Other sources are a confusion between ownership and management, individuals who are shareholders or benefi ciaries of a structure thinking this entitles them to manage a family business or benefi t fi nancially or otherwise from the business. Also, a lack of legal agreement or understanding within a family can give rise to disputes as can governance. Perhaps where one child takes on the role of running the family business and is then challenged by his or her siblings on poor performance or key decisions. Family members placed in roles they are unsuited for can lead to discord. Disputes also arise with intermediaries, private banks and wealth managers where a portfolio has performed poorly; trustees whose service is challenged or where benefi ciaries are unhappy with how the trust is being run and level and frequency of distributions. Mitigation of most of those risks can be through a good and, I must emphasise, practical family governance agreement. We have seen all too often lengthy and expensive family governance documents usually created by management consultants or the Big Four accountancy fi rms, lying unopened in a drawer. For banks and trustees, clear communication with families and avoiding misunderstanding of expectations can avoid disappointment or worse. What trends and opportunities do you anticipate within the private wealth sector in the next few years? I am delighted to see more gender diversity in family businesses and the importance of this for families. Women are now highly educated and although there is more to do in female representation on boards and in senior roles, I welcome seeing more women in senior roles within families and in private wealth intermediaries. I defi nitely see greater interest in asset diversity. Yes, there will always be the need for a well-managed prudent security portfolio with a quality private bank or asset manager but we already see more interest in investment with hedge funds and in alternative asset classes—particular types of real estate such as student accommodation, elderly care, hospitals, solar farms etc. Other alternatives that have performed well in the last decade include venture capital funds, fashion and luxury brands, art and car collections, and crypto and digital assets. The market is very diff erent from European and Asian cities and the personality, understanding of local issues and skill-set of those leading the teams and in senior roles is critical 40% The number of HNWIs in the UAE is expected to grow by 40% by 2031 LME_May2025_ 20-25_Private Wealth_13594372.indd 24LME_May2025_ 20-25_Private Wealth_13594372.indd 2402/05/2025 06:3202/05/2025 06:32May 2025 25law-middleeast.com SPOTLIGHT The world's wealthy are more mobile and willing to move jurisdiction to live than ever before. With the negative impact in the UK from recent tax changes, and indeed the high taxes of other European jurisdictions impacting on the private wealth community we have seen an unprecedented number of high and ultra-high net worth families moving to the UAE. Dubai has always been popular but Abu Dhabi is increasingly so. Families move not just for fi scal reasons of course and personal safety is hugely important. We have noticed the reference to personal safety from our clients and the admirable safety rating of the UAE has undoubtedly been a positive factor that will continue to encourage migration to the UAE. What advice would you give to law fi rms looking to expand their private wealth practice in the region? This is one of the fastest growing and most dynamic regions in the world for private wealth advisers. We have all seen the estimate of a trillion dollars to be transferred over the next few years from individuals who created this wealth in the region to the next generation. That said, the Middle East is not a region to open a law offi ce, send over some of the team from Europe and hope it works. The market is very diff erent from European and Asian cities and the personality, understanding of local issues and skill-set of those leading the teams and in senior roles is critical. The private wealth market in Dubai and Abu Dhabi is still relatively small compared to the UK, USA, or Switzerland, and I am often struck by how genuinely friendly, collaborative and respectful the community is to one another, more than one might fi nd in the UK or US. The business and social interaction with clients and intermediaries is also far greater and those uncomfortable or unwilling to embrace this aspect would be well advised to stay at home. That said, the era of the poorly acclimatised suitcase adviser visiting three or four times a year is declining, clients have a right to expect their advisers to be world class and to be based in the region. Regional families of signifi cant wealth want to be low profi le in terms of wealth and extremely well advised on their assets, tax, and succession LME_May2025_ 20-25_Private Wealth_13594372.indd 25LME_May2025_ 20-25_Private Wealth_13594372.indd 2502/05/2025 06:3202/05/2025 06:3226 May 2025law-middleeast.com COVER STORY LME_May2025_26-31_Cover story_13599418.indd 26LME_May2025_26-31_Cover story_13599418.indd 2605/05/2025 16:1805/05/2025 16:18May 2025 27law-middleeast.com COVER STORY The Dubai managing partner discusses leading an Italian law fi rm in the Middle East, growing the team more than fi vefold, and his two-decade tenure at the fi rm MAESTRO OF THE MIDDLE EAST: MARCO DE LEO ON COMPOSING BONELLIEREDE’S BOLD GULF EXPANSION By Aishah Hussain Photography by Ajith Narendra LME_May2025_26-31_Cover story_13599418.indd 27LME_May2025_26-31_Cover story_13599418.indd 2705/05/2025 16:1805/05/2025 16:1828 May 2025law-middleeast.com COVER STORY Marco De Leo has been with BonelliErede, a premier Italian law fi rm, for his entire career. He joined on the day he graduated with a law degree from the Catholic University of Milan in 2004, rising through the ranks in Milan to make managing partner in Dubai in 2020. In the years since he assumed the role, he has grown the legal team more than fi vefold. He recalls the fi rm’s initial foray into Dubai in 2017, saying he was one of three lawyers who set up the offi ce in the Dubai International Financial Centre (DIFC)’s Index Tower, and that he even wore a hard hat in the early days. Today, the Dubai offi ce is the fi rm’s hub for work in the wider Gulf Cooperation Council (GCC), with 16 specialist lawyers who can tap into the fi rm’s network of more than 500 lawyers across eight offi ces. REGIONAL STRATEGY In addition to Dubai, the fi rm has an offi ce in Cairo, and the teams in both locations often collaborate across matters. To further support its operations in the region, BonelliErede has established a Middle East and North Africa (MENA) committee, led by partner Catia Tomasetti alongside partners including De Leo and Giuseppe Manzo. In addition, there is a secondment programme enabling lawyers from the Cairo offi ce to work in Dubai for around six months to one year. Opening the Dubai offi ce a year after the Cairo launch was a strategic decision by BonelliErede to expand its reach into civil law jurisdictions beyond Europe. “Italy and the UAE have a strong commercial relationship and the UAE is a civil law jurisdiction, and, although we have English law capability, we are mainly a civil law system fi rm," De Leo explains. This alignment with local frameworks provides BonelliErede with a unique advantage in a market often dominated by UK and US law fi rms. “We are one of the only continental fi rms advising on civil law systems in the region,” he says. “Our expertise allows us to eff ectively serve international clients navigating these jurisdictions, while also providing comprehensive assistance to local players who require our specialised advice.” Initially the work would arrive from Milan, where the fi rm is headquartered and moving to new offi ces next year. Now, he says around 70% of the workload is generated locally. “Our intention was not to open a representative offi ce, rather the idea was to establish a fully operational offi ce, similar to our Italian locations, to penetrate the Middle East market and deliver our legal services with the same level of quality for which BonelliErede is well known,” says De Leo. “Our aim is to become the go-to fi rm in the Middle East.” We are one of the only continental firms advising on civil law systems in the region LME_May2025_26-31_Cover story_13599418.indd 28LME_May2025_26-31_Cover story_13599418.indd 2806/05/2025 17:1906/05/2025 17:19May 2025 29law-middleeast.com COVER STORY the business,” he says, before adding: “If you want to successfully manage the business.” De Leo specialises in corporate law and mergers & acquisitions (M&A), which is also the core focus of the Dubai offi ce. This is further supported by capabilities in project fi nance, energy, international taxation, and a rapidly expanding international arbitration practice. He explains this growth refl ects the increasing sophistication of regional arbitration centres as new rules and regulations are introduced, as well as the region’s large-scale projects in which disputes are materialising. A key focus moving forward for the fi rm is to grow its international arbitration practice across the region, particularly in Saudi Arabia, he says. BIG MANDATES “2024 was a very good year for us, in line with previous years,” he remarks. The fi rm was involved in big mandates, including an Abu Dhabi government-owned company’s joint venture with an Italian government-owned shipbuilder. It was also recently involved in a deal by Stadler Rail with Saudi Arabia Railways for the supply and maintenance of railway trains for use on Saudi Arabia’s expanding network. There have also been deals involving the luxury sector, and BonelliErede has a dedicated Members of BonelliErede's Dubai team with Marco De Leo A PERSONAL CONNECTION For De Leo, a father of two young boys aged four and one, his relocation from the fi rm’s Milan offi ce to Dubai held personal appeal. He is originally from Sicily, and so the city's warm climate and proximity to the sea appealed to him, plus as a triathlete, who competes at an Ironman World Championship level, he describes it is an ideal training ground. “It is a key part of my life outside of work,” he says, referencing the demanding undertakings of an Ironman: a 190km cycle, a 42km run, and a 3.8km swim. A PROFESSIONAL APPROACH This dedication and discipline that drives his athletic pursuits are evident in his professional approach. While the offi ce has a strong team, De Leo is the only partner. He starts his day at 5am with some form of physical activity, after which he will head to the offi ce where he continues to fee-earn alongside his managerial duties. “I do business development; I get the mandate, but I also work on the mandate,” he says. “I do not go home if I have not fi nished my work, or if I am not satisfi ed with the work that I have done,” he adds. “I do the same hours as I was doing as an associate.” “I do not think there is another way to manage 1999 The year BonelliErede was founded through a merger of three law firms LME_May2025_26-31_Cover story_13599418.indd 29LME_May2025_26-31_Cover story_13599418.indd 2906/05/2025 17:1906/05/2025 17:19Next >