Middle East Lags In Succession Planning, Says New Report

High-networth (HNW) families in the Middle East are often delaying succession planning, a new report showed on Wednesday.

A new report by Lombard Odier has revealed a growing challenge, where succession planning is often delayed - posing risks to family legacies and business continuity.

Based on a survey of 300 HNW individuals across the UAE, Saudi Arabia, Qatar, Kuwait, and Bahrain, the report finds that fewer than one in five respondents have a comprehensive succession plan in place. This comes as the region braces for the“great wealth transfer,” with over $1 trillion expected to pass to the next generation by 2030.

The study highlights intergenerational tensions as a key barrier to succession planning. Half of the surveyed families have postponed discussions, citing difficulties in reaching consensus and balancing traditional values with modern leadership needs. Notably, 81 per cent of Next Gen respondents plan to switch wealth advisors, signalling a shift in investment philosophy and a break from legacy practices.

Family governance structures are also lacking. Fewer than 16 per cent of family businesses have formal governance frameworks, with resistance from senior members and conflicting visions for the future cited as major obstacles.

Despite these challenges, the region is witnessing a surge in the establishment of family offices. Over half of HNW families now operate one, rising to 80 per cent among those with family businesses. These offices are evolving beyond traditional investment management to offer services such as succession planning, legal and tax advisory, philanthropy, and Next Gen education.

Ali Janoudi, Head of New Markets at Lombard Odier commented:“Succession is not something that happens all at once. It is a gradual process that takes time, clarity and trust across generations. What we are hearing from families is not hesitation, but a need for space to plan with intention, and the right structures to support that journey. In this region, private wealth is growing rapidly. The question is no longer whether the next generation is ready, but whether we are doing enough to prepare them. That means moving beyond just protecting assets. It is about preserving purpose, values and relationships.”

The UAE has taken proactive steps to encourage structured succession planning and the formation of family investment offices. Policymakers are increasingly aware of the importance of preserving family wealth and business continuity, especially in light of high-profile transitions that have underscored the need for clear frameworks.

The report also points to a generational shift in expectations from wealth managers. The Next Gen prioritises digital platforms, personalised services, and advisors with“soft skills” such as conflict resolution and governance expertise. Women are playing a growing role in leadership, with respondents identifying their contributions as key to innovation, governance, and succession planning.

Lombard Odier's findings underscore the urgency for families to begin succession discussions. As the Middle East diversifies its economy and embraces digital transformation, the success of family businesses-and by extension, the region's economic resilience-will depend on proactive planning and intergenerational collaboration.

“Hope is not enough,” the report warns.“Without open communication and precise planning, business and wealth transitions too often become a source of conflict, family division, and financial disintegration.”

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