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What’s behind the rapid rise of family offices in the Middle East? Exploring the findings of our succession survey
Joëlle de Cerjat Santa Cruz
Senior Wealth Planner - Middle East
Across the Middle East, family offices are rapidly on the rise.
According to Lombard Odier’s recent Middle East private wealth report, for which we surveyed 300 high-net-worth individuals (HNWIs) living in the KSA, the UAE, Kuwait, Bahrain and Qatar, 55% of HNWIs have already set up a family office – a further 11% are considering it.
Our insightful new guide explores succession readiness in the Gulf and the evolving challenges local families face as they prepare to transfer wealth to the next generation. Discover practical insights to ensure a seamless transition and protect your family’s legacy for generations to come.
While the composition of family offices may vary widely – from fully fledged structures with dedicated investment, legal, tax, and administrative teams to smaller, less formal set-ups – their growing prevalence reflects the rapid evolution of the Middle Eastern private wealth landscape.
With help from our expert Joëlle de Cerjat, Senior Wealth Planner Middle East, we explore the explosive rise of family offices in the unique context of a region where traditional attitudes to investing and wealth management are changing.
The rise of family offices is a clear sign that families are increasingly seeking structured, strategic approaches to preserve and grow their assets
A professionalising and maturing market
According to Joëlle de Cerjat: “The rise of family offices is a clear sign that private wealth management in the Middle East is professionalising. Families are increasingly seeking structured, strategic approaches to preserve and grow their assets.”
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Part of this desire comes from the embrace of more diverse investment strategies, necessitating a more professional structure, she explains. “HNWIs in the region are diversifying beyond traditional sectors like real estate and local businesses. They’re exploring global markets, private equity, venture capital, and sustainable investments, with philanthropy often integrated into their approach.
As the private wealth landscape in the Middle East matures, so the family offices that serve them are themselves becoming more sophisticated, she says, with the structure varying depending on the size and complexity of the family’s wealth. “Some family offices serve just one family, while others pool resources to offer institutional-grade services to multiple families. In more sophisticated setups, you’ll also find specialists in philanthropy, governance, education, and even lifestyle management.”
While this is true of family offices in all private wealth markets, Joëlle notes that there are unique cultural factors shaping the ecosystem in the Middle East. “One of the most defining elements is the central role of the family itself,” she says, “not just as a unit of wealth ownership but as a deeply rooted decision-making structure. In many cases, family ties are stronger than corporate governance, and trust is built through relationships rather than formal processes. This influences how family offices are structured and operated.”
Succession’s ‘crisis of silence’ – could family offices be part of the cure?
One of the central findings of Lombard Odier’s Middle East private wealth report was that family divisions – especially between generations – have created a crisis of silence around the topics of succession planning and family governance, putting family businesses and legacies at risk. Could family offices help to bridge the divide, or is family unity a prerequisite for establishing a family office?
According to Joëlle de Cerjat, “A family office can often time contribute to help resolve generational or other divisions – you don’t necessarily need full unity to establish one, provided family values and goals are clear and aligned. In fact, the process of setting up a family office can itself be a catalyst for dialogue, alignment and trust-building.”
“Even if families don’t agree on everything, they need to recognise that structure helps to bring clarity around roles, responsibilities and decision-making. Whether through family charters, governance frameworks, or professionally facilitated family meetings, the office can help bridge generational gaps.”
As the next generation begins to grapple with the responsibilities they will one day inherit, the drivers of family office creation are changing, Joëlle notes. “In my experience, it is usually the older generation that initiates the setting up of family offices, often to ensure continuity and protect their legacy. But increasingly, we are now seeing younger family members driving the conversation, seeking transparency, purpose, and a voice in shaping the future.”
Family offices can bring many benefits, but they also bring added cost and significant changes to the day-to-day management of family wealth
When to set up a family office…
The decision to set up a family office is not one to be taken lightly, however. Family offices can bring many benefits, but they also bring added cost and significant changes to the day-to-day management of family wealth.
Joëlle de Cerjat explains, “Setting up a family office is a strategic decision. The timing depends on the complexity of the family’s wealth, their long-term goals, and the challenges they’re facing. Generally, families might consider establishing a family office when their financial affairs become too complex to manage informally – whether that’s due to international holdings, the involvement of multiple generations, or the need to structure succession planning.”
While family offices can be useful for families who still own and operate a family business, Joëlle notes that “many family offices are created after the sale of a family business. This is often a pivotal moment, when liquidity increases and the family needs to shift from managing a company to managing a portfolio of assets. At this moment, a family office can help to preserve wealth, define a new legacy, and maintain family cohesion.”
Private banks empower family offices. We bring deep expertise, global reach, and institutional-grade infrastructure that newer or leaner family offices may not have in-house
…and when not to
As important as the question of ‘when’ to set up a family office, is the question of ‘when not to’. Family offices require significant resources, a clear purpose, and a long-term commitment. Joëlle explains, “For many families, especially those whose financial affairs are relatively straightforward or who already have strong relationships with trusted advisors and a private bank, the added cost and complexity of a family office may not be justified.”
Here, the private banking and family office ecosystems can overlap. Many of the services that a family office would need – such as investment management, wealth planning, tax and legal coordination, and even philanthropy advisory – are core offerings of a well-established private bank.
Private banks and family offices don’t need to be in competition, however. As Joëlle notes, “Private banks empower family offices. We bring deep expertise, global reach, and institutional-grade infrastructure that newer or leaner family offices may not have in-house. We work hand-in-hand with family offices, acting as an extension of their internal capabilities. And for families considering setting up a family office, we can help them assess their needs and build a roadmap for how to manage their wealth most effectively – whether through a dedicated office or a strategic partnership with a private bank.”
Lombard Odier’s private wealth report found that HNWIs who have family offices are likely to be better prepared in all areas of their wealth management, from succession planning to understanding tax and cross-border issues.
According to Joëlle de Cerjat, “This finding is not surprising. Families with a family office tend to be more engaged in defining their values, goals and legacy. It’s not just about financial performance – it’s about continuity, cohesion and purpose.”
At Lombard Odier, we anticipate that as the private wealth landscape in the Middle East matures, the trend towards building relationships with private banks and forming family offices will continue, with the family office ecosystem growing in both scale and sophistication.
“There are three main forces driving this,” Joëlle de Cerjat says. “First, the region is undergoing rapid economic transformation, with initiatives like Saudi Arabia’s Vision 2030 encouraging diversification, entrepreneurship and global investment. Families are responding by looking for wealth management structures that support long-term planning and cross-border complexity.”
“Secondly, the generational transition is accelerating. The Next Gen is stepping into leadership roles, and they have different expectations – more transparency, digitalisation, and purpose-driven investment and business strategies. Family offices can be a way to bridge the gap between traditional values and modern approaches.”
“And lastly, the rise of regional financial hubs like Dubai, Abu Dhabi and Riyadh is creating a more supportive environment for family offices. Families across the region are moving from informal arrangements to structured governance, and from reactive wealth management to proactive legacy building, and we in the private banking sector must be ready to support them, whether that’s through direct relationships or by empowering the growing network of family offices.”
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