The influx of high-net worth individuals to the UAE and the wealth succession issues that follow in their wake has been getting ink from the international press, with Bloomberg reporting recent governmental efforts to implement formal succession structures, according to unnamed sources familiar with the matter.

The Economy Ministry has been meeting with prominent family business heads in an effort to better manage generational transitions and avoid issues like those which followed the passing of Majid Al Futtaim — who headed up a USD 16.5 bn empire — in 2021. With Al Futtaim’s inheritance left unresolved, the government had to step in with the appointment of a special judicial committee to oversee the transition.

The stakes are high: With USD 1 tn set to be controlled by emirates’ wealthiest families by 2026 and family-owned businesses making up about 90% of private companies in the UAE, the government is reportedly keen to implement more formalized processes and steer families away from their ever increasing preference for riskier investments in private equity and venture capital. Currently, USD 49 bn could be floating around unclaimed by 2030, according to Dubai International Financial Center’s Innovation Hub — a figure that is set to increase as more and more relatively-new conglomerates face their first generational transition.

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