Gulf Family Businesses Face Succession and Regulatory Challenges as Wealth Transfers Loom

Family businesses across the Gulf are confronting major generational transitions as firms established in the 1960s and 1970s pass to second and third generations, according to a report published by Gulf Times. According to data cited from the Dubai International Financial Centre (DIFC), family-owned enterprises generate approximately 60% of gross domestic product in the United Arab Emirates. However, the lack of structured succession planning risks entangling business assets in protracted legal disputes.

Estimates cited in the report project that between $500bn and $700bn of wealth in the Gulf region will be transferred through inheritance by 2035. Additionally, a 2025 DIFC-linked study estimated that across the Middle East, $123bn could be delayed in probate proceedings for longer than six months, with a further $49bn potentially remaining unclaimed by 2030.

Succession disputes have previously required public intervention, such as the case of the late Majid al-Futtaim, who died in 2021 holding the majority of shares in his group. A government-appointed judicial committee was formed to oversee board restructuring in 2025 for the conglomerate, which reported nearly $20bn in assets as of June 2026 and employed over 40,000 people.

Regional surveys highlight widespread planning deficiencies. Figures from Saudi Arabia's National Center for Family Businesses reported in January 2026 showed that nearly two-thirds of family companies had no formal succession strategy, though a dispute service launched by the center in 2025 had served 170 families by early 2026. A 2022 UBS survey noted that 91% of wealthy investors in the UAE faced difficulties in dividing assets fairly, compared to 66% globally.

To address structural governance risks, the UAE enacted a dedicated family business law in 2022 that took effect in January 2023, establishing statutory guidelines for governance, share ownership, and dispute resolution.