Securing Tomorrow’s Leadership: Succession Strategies For UAE Family Businesses

Earlier this month, Dubai’s judiciary stepped in to restructure the board of a major family-owned enterprise—a move mirroring broader governance trends in the UAE.  

Through the years, courts and mediators have similarly facilitated leadership splits, helped formalize decision-making structures, and encouraged the adoption of legal frameworks to support smooth succession across family businesses.  

These incidents highlight an inescapable truth: family-owned enterprises are key to UAE’s growth, but generational change—and ensuring the right leaders are at the top—are not easy factors to manage. 

According to a joint whitepaper by DIFC Innovation Hub, Julius Baer, and Euroclear, family businesses make up about 90 percent of private companies in the UAE, and are standing on the brink of transferring over US$1 trillion in wealth by end-2026.  

Yet, a newly launched report by HSBC finds that nearly half of Emirati entrepreneurs lack a formal succession blueprint. Without a proper succession plan in mind, this vast pool of capital—and the jobs and innovation it underpins—is at risk. 

A Roadmap To Future-Proof Leadership 

Family businesses today must navigate geopolitical headwinds, volatile markets and rapid technological shifts. Based on research launched by Heidrick & Struggles earlier this year, today’s ideal leader is a blend of global perspective and deep local insight: half of UAE CEOs have cross-border experience, and 43 percent are non-nationals—ranking the UAE fourth globally in leadership diversity. Additionally, a striking 95 percent hold prior C-suite roles, underscoring the premium on seasoned judgment. 

The UAE government is also codifying succession through initiatives such as the ownership governance law and the Dubai Centre for Family Businesses. By elevating succession to a board-level mandate, these policies signal that long-term continuity is inseparable from good governance. And while succession planning is clearly rising on the leadership agenda, execution is where many organizations falter. To future-proof leadership effectively, organizations must start with the fundamentals.  

A strong succession process starts with clear alignment between the board and executive leadership on where the business is heading. This includes understanding its strategic priorities, identifying key risks, and reviewing what has underpinned the company’s past success. Such alignment allows nomination and remuneration committees to build a well-informed view of the leadership profile required—one that reflects the current organizational context, future direction, and overall team dynamics. 

Equally important is to begin planning well ahead of time, ideally three years in advance of a leadership transition. This window allows organizations to develop and assess internal talent, close any capability gaps, and explore external candidates. Early planning is particularly critical in the UAE, where businesses operate across a blend of civil and common law systems. These legal complexities can introduce additional challenges to succession processes, making advance preparation a strategic imperative. 

Often in times of transition, the temptation is to appoint the highest-performing individual. Yet, overlooking cultural or values alignment in favor of short-term results can erode leadership credibility and stakeholder trust. Organizations must take this into consideration and avoid the “rainmaker dilemma” when looking for successors.  

Furthermore, succession planning does not conclude immediately after the new leaders have been chosen. An onboarding program is essential to set them up for long-term success. A structured 12-month program can help new CEOs build relationships, gain a deep understanding of the business context, and align personal development goals with the organization’s trajectory. This becomes even more important when hiring externally, a trend seen in the same Heidrick & Struggles research, where 41 percent of CEO roles in the UAE are externally hired, compared to just 31 percent globally. 

Lastly, succession planning is most effective when grounded in leadership assurance—a structured approach that gives stakeholders confidence in the organization’s leadership pipeline and governance practices. In a region marked by rapid transformation and uncertainty, leadership assurance enables boards to take a long-term, evidence-based view. It supports not just future-proofing leadership, but also empowers the board to make confident, well-informed decisions about the future. 

As the UAE hurtles toward seismic generational wealth transfers and market shifts, succession planning can no longer linger on the periphery. By embedding rigorous, board-driven processes underpinned by leadership assurance, family businesses will secure their legacies and empower their CEOs to seize tomorrow’s opportunities.  

The time to act is now—so that as one generation passes the baton, the next is fully prepared to sprint. 

About The Author 

Dr. Jay Bevington is a Partner in the Dubai office of Heidrick & Struggles, the premier provider of executive search, corporate culture and leadership consulting services, as well as the CEO and Board of Directors Practice Lead in the MENA.