Families in Middle East prioritize governance and succession in business transitions

Middle Eastern ultra-high-net-worth families are prioritizing governance and succession planning as they prepare for business transitions, although many remain unprepared for a potential sale or transfer, according to the 2026 Family Barometer by Julius Baer and EY.

The report, the first collaboration between the two firms, surveyed more than 700 finance professionals. It found that more than four in five ultra-high-net-worth families globally own at least 50% of an operating company, yet only 2.3% are fully prepared for a sale or transfer, while 12% are largely prepared.

In the Middle East, 15% of families said they were fully or largely prepared for a transition, including 3.3% who were fully prepared and 11.7% who were largely prepared. Meanwhile, 58.3% described themselves as somewhat prepared, while 26.7% said they were not ready, compared with 29.5% globally.

For Middle Eastern families considering an exit, valuation expectations were the leading source of disagreement, cited by 60% of respondents. Emotional attachment to the business followed at 56.7%, while 55% pointed to disagreements over its future. Globally, emotional attachment was the most common source of conflict, cited by 60.6%.

Family governance ranked among the region’s top three priorities, while succession planning was the leading priority across all regions.

“What we consistently see is that the families who navigate these transitions with confidence are those who have put governance in place early, agreeing how decisions will be made and involving successors well before any handover takes place,” said Jean Pierre Dib, Co-Head Middle East & Africa at Julius Baer.

Planning for the period after a business sale also varies across regions. In the Middle East, 33.3% of families expect to rely on a family-only investment committee, compared with 24.3% globally. Another 18.3% said investment decisions would be made on an ad hoc basis without formal governance, below the global figure of 26.7%.

The report also found comparatively high levels of next-generation involvement in the region. Some 16.7% of Middle Eastern families give the next generation an equal say in post-sale strategy, compared with 12.3% globally. A further 45% consult younger family members without granting them voting rights, while no respondents in the region said they would exclude successors from post-sale decisions altogether.

Following a business exit, families in the Middle East and Asia are more likely to prioritize long-term growth, while preserving wealth is the leading objective among families in Europe and Latin America.

Beyond business transitions, political stability emerged as the leading societal concern for Middle Eastern families, while personal safety entered the region’s top three concerns for the first time. Intergenerational wealth transfer ranked second.

Geopolitical diversification was the leading investment priority globally and in the Middle East. Real estate ranked second in the region, compared with third globally, while inflation protection placed third.