Middle East Families Prioritise Governance In Business Succession Plans

(MENAFN- Khaleej Times) Middle East business-owning families are placing governance structures and next-generation involvement at the centre of succession planning, setting them apart from their global peers as they prepare for the transfer or sale of family enterprises, according to the latest Julius Baer Family Barometer 2026.

The study, produced by Julius Baer in collaboration with EY, found that while readiness for business transitions in the Middle East broadly mirrors global levels, families in the region place a stronger emphasis on governance, succession planning and involving future generations in key decisions.

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According to the report, 15% of business-owning families in the Middle East are fully or largely prepared for a transition, close to the global average of 14.3%. However, a majority of respondents, or 58.3%, said they were only somewhat prepared for a sale or transfer of a family business.

The findings come at a time when succession planning is becoming increasingly important for wealthy families across the region. Family businesses remain the primary source of wealth for ultra-high-net-worth families globally, with more than four in five holding at least half of their wealth in their operating companies.

One of the report's clearest distinctions is the importance Middle Eastern families place on formal governance. Family governance ranks among the region's top three priorities and continues to influence decision-making even after a business exit. Families in the region are more likely than their global counterparts to establish family-only investment committees to oversee wealth following a sale and are less likely to make investment decisions informally.

The role of younger family members is also expanding. The survey found that 61.7% of Middle East families either consult successors or give them an equal say in planning post-sale strategies, the highest proportion among all regions surveyed. Notably, none of the respondents reported excluding successors from such discussions altogether.

“Family businesses are the foundation of wealth in the Middle East and in a year of heightened regional uncertainty, succession has moved to the centre of our conversations with clients, many of whom are planning across several generations and jurisdictions at once,” said Jean Pierre Dib, Co-Head Middle East & Africa at Julius Baer.

He added that successful transitions are typically underpinned by early planning and clear governance structures.

“What we consistently see is that the families who navigate these transitions with confidence are those who have put governance in place early, agreeing how decisions will be made and involving successors well before any handover takes place,” Dib said.“Equally important is equipping the next generation with the skills, experience and confidence to take on the responsibilities of ownership and leadership when the time comes.”

The report also highlights how geopolitical uncertainty is shaping priorities. Political stability emerged as the leading societal concern among Middle East families, while intergenerational wealth transfer ranked second in importance. On the investment front, geopolitical diversification topped the agenda, followed by real estate investing and inflation protection.

Despite growing awareness of succession challenges, the findings suggest that many families still face a gap between ambition and preparedness. Yet the region's focus on governance and early engagement with future generations indicates that business owners are increasingly seeking structured pathways to preserve wealth and leadership continuity across generations.

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