Many Gulf family businesses are approaching a generational handover. As ownership passes from founders to children and grandchildren, families are rethinking how wealth is held, how decisions are made, and how the family stays together across countries and generations.
Family businesses have shaped the economies of the Gulf. Many of the region’s best-known groups in trading, real estate, retail, construction and services were built by a single founder or a small group of siblings.
That model has served these families well. However, the circumstances that made it work are changing.
Families are larger. Members live, study and invest in different countries. Assets are spread across multiple jurisdictions. And the next generation often has different expectations about their role in the business.
As a result, succession is no longer only a question of who inherits. It has become a question of how the family will own, manage and govern its wealth for decades to come.
From Founder Control to Shared Ownership
In a first-generation business, ownership and control usually sit with the founder. Decisions are made quickly, and the founder’s authority is rarely questioned.
When ownership passes to the next generation, that clarity can disappear. Shares may be divided among several heirs, some of whom work in the business and some of whom do not. Each may have different views on dividends, reinvestment, risk and the future direction of the group.
Without a clear framework, these differences can lead to deadlock, disputes or the forced sale of assets the founder intended to keep within the family.
This is why many Gulf families are now planning their succession while the founder is still in a position to shape it.
A Changing Legal Landscape in the UAE
The UAE has expanded the options available to families planning succession.
For many Muslim families, Sharia principles continue to guide inheritance, and many families wish to plan in a way that respects those principles.
At the same time, the UAE has introduced civil frameworks for non-Muslims, including Federal Decree-Law No. 41 of 2022 on Civil Personal Status, and dedicated wills services are available through the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM).
The DIFC and ADGM also offer foundation regimes that allow families to hold assets through a separate legal entity, governed by a charter and bylaws that set out how the assets are managed and who benefits.
These developments give families more ways to plan. They also mean that families need clear advice on which rules apply to their circumstances and which tools are appropriate for their objectives.
Structures Built for Continuity
Families planning succession in the UAE are increasingly using structures designed to keep assets together and provide continuity beyond any one individual.
Depending on their circumstances, these may include:
- Family holding companies that bring operating businesses and investments under one ownership structure.
- DIFC or ADGM foundations that hold shares and assets for the benefit of the family over the long term.
- Shareholder agreements that set out how shares may be transferred, sold or inherited.
- Family office arrangements that centralize investment management, reporting and administration.
Certain qualifying family foundations may also obtain fiscally transparent treatment for UAE Corporate Tax purposes, subject to meeting the relevant conditions.
The choice of structure should follow the family’s objectives, not the other way around. A structure that suits one family may create unnecessary complexity for another.
Governance Comes Before Structure
Experience shows that the families who manage succession successfully are usually those who agree on governance before they agree on structure.
Many Gulf families are now formalizing the principles that were previously understood informally. This often takes the form of a family constitution or charter, supported by a family council or similar forum.
These arrangements can help a family set out:
- The family’s shared values and long-term objectives for its wealth.
- How family members may join the business, and on what terms.
- How senior leadership roles are filled, including the role of non-family executives.
- How dividends and distributions are decided.
- How disagreements are raised and resolved before they become disputes.
Governance is also an important way to prepare the next generation. Involving heirs early, through education, defined roles and gradual responsibility, makes the eventual transfer far smoother.
International Families, International Rules
Gulf families today are rarely confined to one country. Children may study in the UK, Europe or the United States. Family members may hold property in London, Paris or elsewhere. Some may become tax resident outside the region.
Each of these connections can bring the family within the reach of another country’s tax and inheritance rules. For example, the UK moved to a residence-based system for inheritance tax in April 2025, which can affect family members who have spent many years living there.
A succession plan that works well under UAE law may therefore produce unexpected results abroad. International connections need to be mapped and considered as part of the overall plan.
Questions Families Are Asking Now
For Gulf families reviewing their succession arrangements, useful starting questions include:
- Who currently owns and controls each of the family’s main assets?
- What happens to those assets if the founder is no longer able to make decisions?
- Which inheritance rules apply to each family member and each asset?
- Does the family have an agreed framework for decision-making and resolving disagreements?
- How are family members living abroad affected by the rules where they live?
Answering these questions early allows families to plan in an orderly way, rather than reacting to events.
How WTA International Can Assist
WTA International works with Gulf and internationally connected families on the structuring, governance and administration of their wealth in the UAE.
Our services include succession and wealth structuring, DIFC and ADGM foundation coordination, family holding companies, family office support and family governance arrangements.
Working alongside appropriate legal and tax specialists in each relevant jurisdiction, we help families design arrangements that reflect their values, protect their assets and prepare the next generation.
To discuss your family’s succession planning, please contact our team.
This article is provided for general information purposes only and does not constitute tax, legal, accounting or investment advice. The information is based on legislation and guidance available at the time of publication. Professional advice should be sought based on individual circumstances and the relevant jurisdictions.
