High-net-worth families in the Middle East are increasingly postponing succession planning, as highlighted in a recent report.
This report by Lombard Odier exposes a growing issue: delays in succession planning, which threaten family legacies and business stability.
A survey of 300 HNW individuals from the UAE, Saudi Arabia, Qatar, Kuwait, and Bahrain reveals that less than 20% have a thorough succession plan. This occurs as the region anticipates a “great wealth transfer,” with over $1 trillion set to shift to the next generation by 2030.
The study indicates that intergenerational tensions are a major hindrance to succession planning. Half of the families surveyed have delayed discussions, struggling to reconcile traditional values with modern leadership demands. Notably, 81% of the Next Gen plan to change wealth advisors, indicating a shift in investment strategies and a departure from traditional practices.
Family governance structures are underdeveloped. Only 16% of family businesses have formal governance frameworks, with resistance from senior members and conflicting future visions as primary obstacles.
Despite these hurdles, the region is seeing a rise in family office establishments. More than half of HNW families now have one, increasing to 80% among those with family businesses. These offices are expanding beyond investment management to include succession planning, legal and tax advice, philanthropy, and Next Gen education.
Ali Janoudi, Head of New Markets at Lombard Odier, stated: “Succession is a gradual process requiring time, clarity, and trust across generations. Families aren’t hesitating but seeking the space to plan intentionally and the right structures to support their journey. In this region, private wealth is expanding rapidly. The focus is no longer on whether the next generation is ready, but on our efforts to prepare them. This means going beyond asset protection to preserve purpose, values, and relationships.”
The UAE is actively promoting structured succession planning and the creation of family investment offices. Policymakers recognize the importance of safeguarding family wealth and business continuity, particularly amidst high-profile transitions highlighting the need for clear frameworks.
The report also notes a generational shift in wealth management expectations. The Next Gen values digital platforms, personalized services, and advisors with skills like conflict resolution and governance expertise. Women are increasingly influential in leadership, with their contributions seen as vital to innovation, governance, and succession planning.
Lombard Odier’s findings emphasize the urgency for families to commence succession discussions. As the Middle East diversifies and embraces digital transformation, the success of family businesses—and the region’s economic resilience—depends on proactive planning and intergenerational cooperation.
“Hope is not enough,” the report cautions. “Without open communication and precise planning, transitions of business and wealth often lead to conflict, family division, and financial decay.”
