Succession Planning: The Strategic Imperative for the Middle East’s Family-Owned Businesses 

Key Takeaway: Nearly $1 trillion in GCC family wealth will transfer across generations by 2030. Only 18% of family businesses in the region have a comprehensive succession plan. Confidence is high — 93% of next-generation members believe they are ready. Readiness is not. That gap is the most consequential governance risk in the region.

Last updated: August 13, 2026

To deepen our understanding of this transition, Zavala Civitas has launched a Middle East Governance & Succession Committee led by Senior Advisor Carla Geday. The committee brings together regional expertise, applied research and on-the-ground insights from family enterprises across the GCC. Its mandate is clear: to study emerging governance challenges, succession trends, and the leadership capabilities Middle Eastern family businesses will require in the next decade. The analysis below forms part of that ongoing research effort.

Family-owned enterprises don’t just shape the Middle Eastern economy. They are its foundation. According to New York University Abu Dhabi’s Family Business Histories project, more than 80% of companies across MENA are family-run. In the GCC, their weight is even greater: family firms represent over 60% of private-sector wealth, according to Quwa Legal. In the UAE alone, the Ministry of Economy reports that family businesses contribute around 60% of GDP, employ more than 80% of the workforce and make up nearly 90% of private-sector companies.

With such influence, the region’s economic resilience depends heavily on the continuity of these enterprises. This continuity now hinges on one crucial factor: succession planning. Nearly US$1 trillion in family wealth is expected to transition across generations in the GCC by 2030, according to McKinsey analysis cited by Gulf Business and DIFC. The question is not whether families should prepare for leadership change. The question is whether they can afford not to.

Key Figures at a Glance

Data point Figure Source
GCC family wealth expected to transfer across generations by 2030 ~USD 1 trillion McKinsey / Gulf Business / DIFC
GCC family businesses with a comprehensive succession plan Only 18% Lombard Odier, 2025
Next-generation members confident in ability to lead the business forward 93% Lombard Odier, 2025
UAE family businesses as share of private-sector companies ~90% (60% of GDP, 80%+ of workforce) UAE Ministry of Economy

The shift from tradition to structured succession

For decades, succession in family businesses across the Gulf relied on trust, seniority and unspoken rules. Roles were understood rather than documented, and key decisions stayed within the family. In a less regulated and more relationship-driven environment, this worked well.

Today the context is different. Cross-border operations, institutional investors and higher regulatory expectations have increased the complexity and risk surrounding leadership transitions. Trust still matters deeply, but trust without structure becomes fragile at the moment of succession.

A 2025 study by Lombard Odier highlights this structural gap. Only 18% of GCC family businesses have a comprehensive succession plan, yet 96% of senior leaders and 93% of next-generation members express confidence in their ability to take the company forward. Confidence is high, but readiness is not. The same study shows that many families recognise the importance of succession but leave planning for later, often too late.

At the same time, expectations from younger leaders are changing. According to Lombard Odier, 79% of next-generation respondents intend to work with advisers who align better with their values and digital expectations. They prioritise transparency, innovation, internationalisation and the inclusion of women in leadership roles. These expectations make structured succession planning not only important but urgent.

The gap between confidence and readiness is the most consequential governance risk in the GCC today. 93% of next-generation leaders feel prepared to take the company forward. Only 18% of those companies have a succession plan that would test whether that confidence is justified. In family enterprises, the stakes of that gap are not just organisational — they are personal, reputational, and inter-generational. A contested or unplanned transition does not just disrupt a business. It can fracture a family.
— Carla Geday, Senior Advisor Middle East, Zavala Civitas

How governance and succession planning reinforce each other

Governance reforms are advancing across the region, but their greatest impact is felt when they enable predictable, stable and fair leadership transitions. Research by the Pearl Initiative and PwC shows that succession, conflict resolution and role clarity remain the top governance challenges for GCC family firms. Tensions often arise not from strategy or performance but from uncertainty over who will lead, under what conditions and at what moment.

Legal frameworks across the GCC are evolving to address these issues. According to Quwa Legal, families are increasingly formalising their structures through shareholder agreements, constitutions, trusts and holding companies. Recent reforms in the UAE and Saudi Arabia strengthen governance codes and introduce new vehicles, such as private foundations, to support long-term succession structures.

Investor behaviour also plays a role. PwC’s Private Equity and Family Business Survey shows that around 90% of businesses globally are now open to private equity, up from just 18% in 2011. Investors look for governance structures that ensure decisions will remain consistent and transitions will not disrupt value creation. Succession planning becomes the anchor that gives governance its real operational meaning.

What distinguishes succession-ready family enterprises

The most resilient family-owned businesses in the region are not necessarily the largest or the oldest. They are the ones that approach succession with discipline and intention. Their practices often include:

  1. Succession as a multi-year strategy. Leadership transitions are planned early. Families define clear criteria for leadership roles and prepare successors through structured exposure and responsibility.
  2. Governance that operates, not decorates. Boards with independent directors, functioning committees and real reporting mechanisms create the structure needed for smooth transitions.
  3. Clarity between ownership and management. Members in leadership roles are selected and evaluated on merit. Responsibilities are defined and performance is assessed objectively.
  4. Transparency as a standard. Regular communication, external audits and clear policies around voting, dividends and decision-making reduce uncertainty during transitions.
  5. Integration of the next generation. Successors are not kept on the side-lines until a crisis emerges. They are gradually involved in strategic discussions, innovation initiatives and governance bodies.

A Middle East priority with economic implications

Because family enterprises represent such a large share of private-sector wealth and employment, it becomes a regional economic priority. Unplanned or contested transitions can affect access to credit, investor confidence, business continuity and job stability.

The data is consistent. Family businesses in the Middle East remain confident, ambitious and central to the region’s economic future. But a minority have established frameworks that can support generational transition. With nearly US$1 trillion set to change hands in the coming years, the cost of avoiding structured succession planning has grown exponentially.

With 90% of GCC family businesses now open to private equity — up from 18% in 2011 — the governance expectations placed on family enterprises have changed permanently. Institutional investors do not just evaluate the asset. They evaluate whether the leadership succession structure can protect the value of that asset across a multi-year holding period. A family business without a credible succession framework is a family business with a structurally lower valuation.

How GCC Family Enterprises Build Continuity Across Generations — Zavala Civitas

Family-owned enterprises have fuelled the economic development of the GCC for generations. Their next challenge is continuity. Structured succession planning is the most important tool they have to protect leadership, capital and legacy.

This is not a matter of replacing a founder. It is a multi-year, strategic process that ensures decisions can outlast personalities and preserve unity. Designed well, succession planning strengthens governance, builds trust inside and outside the family, and positions the business for long-term resilience.

Legacy is inherited. Continuity is built. Succession planning is how the region’s family enterprises can secure both.

Frequently Asked Questions: Succession Planning in the Middle East’s Family Businesses

Why is succession planning so urgent for GCC family businesses right now?
Because the scale and timing are converging. Nearly $1 trillion in GCC family wealth will transfer across generations by 2030. Most of that transfer is happening without a formal succession plan in place — only 18% of GCC family businesses have one. At the same time, institutional investors are evaluating governance structures more rigorously, and next-generation leaders are entering with different expectations around transparency, internationalisation, and the inclusion of women in leadership. The window to plan ahead is narrowing.
Why is confidence among next-generation GCC leaders not the same as readiness?
Because confidence measures self-perception; readiness measures whether the structures exist to support a successful transition. 93% of next-generation members believe they can lead the company forward. But without governance frameworks that define roles, resolve conflicts, and create clear decision-making authority, that confidence is untested. A contested succession does not just disrupt a business — it can fracture a family. The gap between confidence and readiness is precisely where succession planning does its most important work.
How does the rise of private equity in the GCC change succession planning requirements?
Significantly. With 90% of businesses now open to PE — up from 18% in 2011 — institutional investors are evaluating GCC family enterprises against governance standards that include succession frameworks. A family business without a credible succession plan is structurally less attractive to institutional capital. Investors need confidence that leadership transitions will not disrupt value creation during a holding period. Succession planning has become a valuation factor.
What legal developments are supporting better succession governance in the GCC?
Reforms in the UAE and Saudi Arabia have strengthened governance codes and introduced new legal vehicles — including private foundations — specifically designed to support long-term succession structures. Families are increasingly formalising their arrangements through shareholder agreements, family constitutions, and holding company structures that separate ownership from management and create documented processes for leadership transition.
How does the Zavala Civitas Middle East Governance & Succession Committee support GCC family enterprises?
Through research, governance advisory, and applied succession planning. Led by Senior Advisor Carla Geday, the committee combines regional expertise from across the GCC with Zavala Civitas’s global experience in executive assessment and CEO & Board Advisory. The work covers governance design, leadership readiness assessment for next-generation successors, executive search where external leadership is required, and succession frameworks tailored to the specific ownership and family structure of each enterprise.

Is your family enterprise building continuity — or leaving it to chance?

Zavala Civitas’s Middle East Governance & Succession Committee supports GCC family enterprises with governance design, leadership assessment, and succession strategy.

CEO & Board Advisory →
Leadership Assessment →
Contact the Middle East Committee →

Carla Geday — Senior Advisor Middle East, Zavala Civitas

Carla Geday — Senior Advisor
Carla Geday is a seasoned executive with over two decades of leadership experience across the Middle East, where she has led high-impact initiatives in corporate strategy, business development, and large-scale operations. Based in Bahrain for the past decade, she previously served as Senior Vice President of Corporate Strategy at Palms Holding. Known for building high-performing multicultural teams and delivering complex programs with precision, Carla bridges global best practices with the governance and succession needs of GCC family enterprises.

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