From silence to strategy: exploring succession, family governance, and the revolution taking place in Middle Eastern private wealth

In recent decades, the Middle East’s private wealth landscape has transformed, with rapid growth due to both internal wealth creation and a continuing influx of wealthy expatriates. The sector is also professionalising, as more and more high- and ultra-high-net-worth individuals (HNWIs and UHNWIs) turn to professional advisors and broaden their investment outlook.

There is also a ‘changing of the guard’ in the ownership and management of family businesses and independent wealth, with an estimated USD 1 trillion expected to be passed to the next generation by 2030¹. As this ‘great wealth transfer’ gathers pace, priorities are changing – HNWIs and UHNWIs are now looking for a broader range of expertise from the wealth management industry, including inheritance planning, legal and regulatory advice, and help with family governance and conflict resolution.

As the private wealth landscape evolves, it is essential that the wealth management industry adapts. This is why we undertook an in-depth survey of HNWIs and UHNWIs in the Kingdom of Saudi Arabia, the United Arab Emirates, Qatar, Kuwait and Bahrain, to understand their changing needs. We caught up with Joëlle de Cerjat, Senior Wealth Planner Middle East at Lombard Odier, to explore the findings.

As the private wealth landscape evolves, it is essential that the wealth management industry adapts

Lombard Odier’s latest survey on succession planning in the Middle East covers a lot of topics in detail. Which findings were you most surprised by?

Family differences and intergenerational frictions stood out as the most surprising – and telling – barriers to formal governance in Middle Eastern family businesses. We found it wasn’t regulatory complexity or lack of awareness holding families back, but the emotional weight of navigating internal family dynamics.

The survey found that fewer than one in seven family businesses have a formal governance structure in place – this speaks volumes. Governance, after all, isn’t just about legal frameworks or technical processes – it’s about creating space for dialogue, trust and continuity across generations. And that’s precisely where many families hesitate, because this profoundly human element can be more challenging than dealing with the structural technicalities of governance.

For advisors and private banks, this presents a powerful opportunity: to support families not only with tools and structures, but with empathy, patience, and a deep understanding of the human side of governance.

What could the consequences be of this lack of governance?

Without good family governance, even the most successful families can be vulnerable to fragmentation and loss.

In the daily running of a business, lack of governance can manifest as unclear leadership, overlapping responsibilities, or decisions being delayed because no one knows who has the authority to act. It can also create tensions between family members.

When it comes to managing independent family wealth, it can result in missed investment opportunities, inconsistent strategies, and a lack of accountability. It also makes it harder to prepare the next generation for a leadership transition as they may feel unsure of their day-to-day role.

The survey found that fewer than one in seven family businesses have a formal governance structure in place

Succession planning differs from family governance in that it is specifically about planning for the transition to the next generation, rather than the day-to-day management of businesses or wealth. The Lombard Odier survey describes a ‘crisis of silence’ when it comes to succession planning. Do you think the problem is really this serious?

Yes, I do believe the term ‘crisis of silence’ is warranted. Our survey revealed that many families avoid discussing succession altogether – not because it’s unimportant, but because it’s uncomfortable.

This is something I’ve also observed in my work. There’s a noticeable discomfort when it comes to discussing topics like incapacity or death. Interestingly, I’ve found that the older generation are usually quite open to speaking with professionals such as wealth planners or lawyers about these matters. However, they often don’t feel ready to have those same conversations with their children – instead they make assumptions about what their children might want or expect. There’s still a strong tendency to think in terms of ‘I decide, and my children will follow.’

related content.

expat in the UAE: bespoke cross-border wealth management.

learn more

awardsmiddle-east

awardsmiddle-east

Lombard Odier named best private bank in the Middle East and UAE by Euromoney

April 3, 2025

This is compounded because the younger generation can struggle to raise these topics with their parents. The problem is that silence doesn’t prevent conflict, it often amplifies it. We’ve seen cases where the lack of planning led to stalled decision-making, legal battles, or the erosion of family assets.

Succession is not just about naming a successor – it’s about preparing the next generation so as to preserve not only financial wealth, but also the family’s identity, purpose and long-term vision. That’s why we advocate for early and open conversations supported by professional guidance. The first and most crucial step is to break the silence.

Succession is not just about naming a successor – it’s about preparing the next generation so as to preserve not only financial wealth, but also the family’s identity, purpose and long-term vision

The survey finds that a lot of the obstacles to planning and governance come from an intergenerational divide. What are you seeing in your work that might be getting in the way of communication or unity across families?

I often see that the older generation struggles to let go of control. They’ve built the business, often from the ground up, and understandably feel a strong sense of ownership – not just over the company, but over the way things are done. Trusting the next generation to take the reins can be very difficult, especially if they want to do things differently.

On the other hand, the younger generation often wants to modernise, innovate, and bring in new ways of working – especially through digital transformation. To the older generation, it can appear that the younger generation is rejecting the traditional approach. This creates tension.

These differences aren’t inherently negative – in fact, they can be complementary. But without a structured framework for dialogue and decision-making, they often lead to problems. That’s where family governance plays a crucial role, helping the generations to align on shared goals and build a legacy together rather than in parallel.

our expertise.

our private banking and wealth management expertise in the middle east.

learn more

shariah-compliant investment offering.

learn more

How do you expect the family business and private wealth landscape to evolve in the Middle East over the next decade?

Economic diversification, regulatory reform, and the emergence of new industries are all pushing families to rethink how they manage their wealth and legacy. Families are also becoming more global. Their assets, lifestyles, and next-generation members are increasingly spread across jurisdictions. This brings complexity and the need for more structured governance, succession planning, and professional wealth management.

Family businesses have long been the backbone of regional economies – now they are increasingly being encouraged to professionalise, innovate, and expand beyond traditional sectors. Initiatives like the Kingdom of Saudi Arabia’s Vision 2030 and similar national strategies are pushing families to think more globally, embrace sustainability, and contribute to broader economic goals.

At the same time, the next generation is stepping into leadership roles with different expectations. They’re more digitally native, more impact-driven, and more open to new asset classes and business models. This generational shift will reshape how wealth is managed, with greater emphasis on transparency, technology, and purpose.