Fewer than one in five high-net-worth individuals in the Middle East have a succession plan that covers the full process, as families continue to face disagreements between generations, gaps in access to advice and differences over how wealth and businesses should pass from one generation to the next.
Aboudi Najia, Co-Head of Saudi Arabia, UAE and Oman at Lombard Odier, said the delay often has less to do with paperwork than with questions around mortality, control and the transfer of responsibility.
Lombard Odier’s survey found that about 45 per cent of families cite the challenge of reaching agreement between generations, while 43 per cent point to a lack of access to expert guidance. A further 41 per cent cite differences between family traditions and how their children want to lead.
“For many founders, handing over responsibility can feel like giving up a part of their legacy,” Najia said in an exclusive interview with Lana.
“However, delaying this process works against the family’s own interests. Succession is not a document you sign once and file; it is a journey that unfolds over years and requires clarity and trust to be built between generations. Families who begin early give themselves room to disagree, to test ideas, and to prepare heirs thoroughly,” he said.
“Our advice is to separate the conversation from the crisis. The best time to plan is when there is no urgency: when the founder is active, relationships are strong, and decisions can be made with intention.”
Geopolitical uncertainty puts focus on succession planning
However, periods of geopolitical uncertainty can remind families of the need for succession and emergency planning, but Najia said the process should not be driven by news events.
Families that have documented their wishes, agreed how decisions will be made and established governance are better placed to navigate disruption without continuity depending on one individual, he said.
“So while uncertainty adds urgency, it should prompt reflection rather than panic. The goal is to build something durable enough that the next period of disruption is a manageable event and not an existential one.” Najia said, adding that families beginning a succession plan should start with a conversation rather than a will, trust, holding company or other legal structure.
He said structures put in place before a family has agreed on its aims can create problems rather than resolve them.
The first discussion, should focus on what the family wants its wealth to achieve for the current generation and those that follow, as well as the values that should guide how that wealth is managed and transferred. Those discussions form the basis for decisions on ownership and control.
Once the family has reached alignment on purpose and values, it can move to governance tools, including a family constitution setting out principles, advisers to guide the process and a succession framework. “These mechanisms give structure to a shared intention,” Najia said.
“At Lombard Odier, we believe succession is a journey, not a transaction.” He said the bank’s role includes helping families hold succession discussions, involve the next generation and translate family goals into governance and wealth-planning frameworks.
“When purpose comes first, the legal, financial and investment structures that follow are far more likely to endure across generations.”
Older and next generations bring different priorities
Disagreements between the older generation and the “Now Generation” should not automatically be treated as conflict, Najia said, adding that both generations can share the same concern for the family’s future while approaching decisions from different positions.
The older generation brings experience, knowledge of the family and business, and an understanding of the values behind the enterprise. The next generation can bring knowledge of technology, new business models and changes in markets.
Lombard Odier’s research found that 46 per cent of younger family members believe new technologies will have the greatest impact on their businesses in the years ahead. Another 32 per cent see international expansion as a driver of change.
Najia said families can combine the approaches of both generations rather than choosing one over the other. Governance can help manage those discussions. A family council, decision-making processes and forums for debate can provide a structure for disagreements.
An adviser without a stake in the outcome can also help by asking questions, reframing positions and keeping discussions centred on family goals, Najia said. The research also suggests that confidence in the next generation is not the main issue.
Both generations reported confidence in the ability of the next generation to lead, with 96 per cent of the older generation and 93 per cent of the next generation expressing confidence in the next generation’s ability to assume leadership.
“The task is simply to give that confidence a framework within which different perspectives can meet and result in better outcomes,” Najia said.
Next Gen clients rethink wealth adviser relationships
Only 21 per cent of Next Gen respondents said they plan to retain their parents’ wealth adviser, according to the research. Najia said this does not mean younger clients are turning away from advice. Instead, their expectations of the adviser relationship are changing.
Among younger clients choosing an adviser, 35 per cent prioritise shared values, 31 per cent prioritise access to private markets and 30 per cent cite digital capabilities.
“Many have built careers as entrepreneurs or investors in areas such as AI, fintech and e-commerce, and they expect an adviser who understands their ambitions, not just their portfolios. They also expect advice to extend well beyond investments. Governance, succession, family dynamics and cross-border estate planning sit at the heart of preserving wealth across generations, and they are precisely where a portfolio-only relationship falls short,” Najia said adding that Lombard Odier is responding by engaging members of the next generation before wealth changes hands.
Through Next Gen programmes, education and family governance discussions, the bank works with families to prepare future leaders to become stewards of wealth rather than only beneficiaries.
“Ultimately, retaining the next generation is not about inheriting a client relationship,” Najia said. “It is about building one long before wealth changes hands by demonstrating relevance, fostering trust and helping families prepare for the responsibilities that come with preserving wealth across generations.”
Family complexity can outgrow informal decision-making
Najia said one risk families in the Middle East can underestimate is the speed at which family and asset complexity can outgrow informal decision-making.
When a family is small and the founder sits at the centre of decisions, discussions by phone or over dinner may be enough. As wealth grows, generations multiply and assets spread across businesses and countries, that approach can expose families to risk.
“Most families assume succession will happen naturally, that everyone shares the same understanding, and that the difficult conversations can wait a little longer. Should a triggering event arise, the absence of structure becomes suddenly visible,” he said.
The survey nevertheless found signs that families are putting institutions in place. More than half, or 55 per cent, of high-net-worth families surveyed have established a family office. The figure rises to four in five among families that run businesses.
Najia said those numbers, together with the 96 per cent and 93 per cent confidence levels recorded among the two generations, point to progress, but governance, succession planning and family dialogue remain part of the process.
“For expatriate families, the exposure is greater still. Assets and heirs are often spread across several countries with different inheritance rules. Without a clear estate plan and choice of applicable law, wealth can be tied up in lengthy disputes,” he said.
“Ultimately, succession is not simply about transferring assets. It is about preserving the values, relationships and purpose that hold a family together. Families that endure across generations are those who treat governance, communication and long-term planning as carefully as how they invest in growing their wealth,” he concluded.
