Future-Ready: Succession Planning for the NextGen Leaders of the UAE
The Middle East stands on the cusp of an unprecedented generational wealth transfer, with an estimated US$1 trillion poised to change hands by 2030. Yet, despite this seismic shift, the region remains largely underprepared: only 24% of High-Net-Worth Individuals (HNWIs) have a comprehensive estate plan, and nearly three-quarters are – not ready yet to engage in meaningful legacy planning–even with their most trusted advisors and long-time wealth managers.
This inertia is not merely a matter of oversight; it's a reflection of deeper structural and emotional complexities. Over 53% of families cite time and the perceived complexity of succession planning as major deterrents. Estate planning often requires navigating sensitive family dynamics, reconciling diverse interests, and facing the discomfort of discussing mortality. The result: important decisions are deferred, sometimes indefinitely.
At the same time, family structures themselves are evolving. The priorities of first-generation founders of family businesses can differ dramatically from those of their successors. While founders may prioritize business continuity and legacy, NextGen leaders often emphasize impact investing, diversification, and sustainability. Multigenerational enterprises must therefore reconcile these differences while remaining aligned with shared values and long-term goals.
Compounding this is the global dispersion of heirs. As second- and third-generation family members increasingly study, work, and settle abroad, cross-border considerations have become central to legacy planning. Jurisdictional differences in tax, inheritance laws, and asset protection regimes introduce layers of complexity that traditional, domestic-focused estate planning models are ill-equipped to address.
Today’s NextGen leaders—global citizens and digital natives—are seeking solutions that reflect their lifestyles and values. Succession planning must be reimagined to meet these expectations, blending tradition with innovation and flexibility.
Innovative Tools for Modern Succession Planning
New technologies offer promising solutions to many of these challenges. Artificial Intelligence (AI), smart contracts, distributed ledger technology, and tokenization are no longer theoretical concepts—they are already reshaping the wealth management landscape. These tools offer the potential to streamline asset transfers, reduce legal and administrative friction, and enhance transparency.
For example, as digital assets—from cryptocurrencies to tokenized securities—become increasingly common in personal and family portfolios, the question of how to effectively include them in estate plans has come to the fore. Recognizing this emerging need, the DIFC Innovation Hub has partnered with private sector leaders to explore practical approaches to digital asset estate planning. Their goal: ensure digital wealth can be seamlessly and securely passed down to future generations.
UAE: A Global Hub for Multigenerational Wealth Preservation
With its forward-thinking policies and flexible structures, the UAE has quickly emerged as one of the global centers for wealth preservation and succession planning. Anchored by advanced financial centers such as the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), the country offers world-class regulatory frameworks and a growing suite of specialized tools for family governance and succession planning.
In 2023, DIFC established the Family Wealth Centre—the first of its kind globally—designed to support family businesses and ultra-high-net-worth individuals. The Centre provides a holistic ecosystem of resources, including access to legal and financial expertise, educational initiatives, and peer networking opportunities.
In parallel, DIFC’s Family Arrangements Regulations offer a comprehensive legal framework to guide succession and legacy planning. Equally notable are the DIFC’s and the ADGM’s introduction of the DIFC and ADGM Foundations, modern alternatives to traditional trust structures that provides families with a durable and flexible vehicle for holding both personal and corporate assets.
These initiatives reflect the UAE’s broader ambition to empower family enterprises and secure their long-term contribution to the national economy. By equipping families with the tools needed to preserve and grow their wealth across generations, the country is creating an environment where families can confidently plan for the future.
Future-Ready Planning Starts Now
The transfer of wealth from one generation to the next is not just a financial milestone—it is a defining moment that will shape the region's economic and social fabric for decades to come.
As the UAE continues to solidify its role as one of the global wealth management hubs, families have access to an unparalleled set of tools and support systems. The integration of cutting-edge technology, sophisticated legal frameworks, and a culture of innovation makes it possible to craft succession strategies that are as dynamic and global as the NextGen leaders they aim to empower.
Fortunately, families don’t need to navigate this complexity alone. A growing network of wealth managers and advisors based in the UAE are deeply attuned to the region’s unique challenges. With cross-jurisdictional expertise and a nuanced understanding of both tradition and transformation, these professionals are trusted partners in the journey of legacy building.
In an era defined by change, foresight, preparation and structuring will distinguish those who merely inherit wealth from those who shape their future.
Ahmad Chahidi, Managing Director, Union Bancaire Privée
