Fewer than one in five Gulf family businesses has a comprehensive succession plan in place, according to Lombard Odier’s 2025 GCC Succession Planning Survey. While 96% of senior leaders and 93% of the next generation expressed confidence in heirs’ ability to lead, the majority of families continue to postpone formal planning. In Saudi Arabia, nearly 60% of respondents said succession is a matter for the future, while 30% in the UAE gave the same response. Barriers include disagreements among family members, limited access to expert advice, and tension between traditional expectations and modern leadership styles.
Governance structures still rare
Formal governance frameworks remain limited, with fewer than one in six family businesses adopting structured mechanisms to manage leadership transitions. The absence of clear rules leaves transitions vulnerable to friction, despite widespread recognition that succession is a strategic priority. Families continue to rely on informal arrangements, a practice that increases risk as wealth transfers accelerate across the region.
Family offices on the rise
The study points to a sharp rise in family office adoption as wealth owners seek greater sophistication in managing intergenerational assets. More than half of high-net-worth families now operate family offices, with the figure climbing to 80% among those with active businesses. In Saudi Arabia, almost 70% of families reported having a family office, with most structured as single-family entities. In the UAE, half of the respondents confirmed they have set up a family office, almost half of which are single-family. Tax optimisation and succession planning were cited as the top reasons for establishing these structures, signalling an appetite for more formalised decision-making and long-term strategic alignment.
New priorities for the next generation
Succession is no longer confined to ownership transfers. Younger leaders are reshaping family enterprises with new priorities. Forty-six per cent of next-generation respondents said technology will have the greatest impact on business in the near term, while nearly a third identified international expansion as a focus. The survey also found that women are playing a more prominent role. One in three families now has women in senior leadership, with respondents linking their involvement to stronger outcomes in innovation, governance and collaboration. In Saudi Arabia, 44% of families reported female participation in leadership, compared with almost one-third in the UAE.
The survey highlights a shift in expectations of wealth advisors. Seventy-nine per cent of next-generation respondents said they plan to change the advisor their parents worked with, citing different priorities. When selecting an advisor, 35% prioritised shared values, followed by access to private markets and strong digital capabilities. Nearly half said they would consider using a fully digital wealth platform. This marks a significant departure from traditional advisory relationships, reflecting demands for both financial expertise and alignment with long-term vision.
Preparing for a trillion-dollar transfer
Private wealth in the region is expanding rapidly, with estimates suggesting around $1 trillion will change hands in the Middle East by 2030. Lombard Odier’s Ali Janoudi, Head of New Markets, said succession should be seen as a gradual process requiring time and trust across generations. He noted that the challenge is no longer about the readiness of the next generation, but whether families are establishing the right structures to support them.
The findings highlight a widening gap between recognition and readiness. Gulf families are optimistic about the ability of heirs to lead, but without stronger governance and advisory frameworks, the region’s largest wealth transfer risks falling short of its potential.
