It’s dawn in Sharjah, and the lights at a decades-old trading company flicker on. The almost deserted, 4-floor glass building breathes to life, gearing up for the day’s activity to unfold. The founder, now well into his eighties, makes his way across the marble corridors with a steady yet lightness in his stride. But these days, however, his son sits beside him during boardroom meetings, not just as an observer but as an active decision-maker in the family business. Their conversations see-saw between the price of raw materials and software integration, traditional contracts, and venture capital. This delicate dance, between preserving heritage and embracing reinvention, is the story of succession leadership playing out across the Gulf region.
Today, family businesses of all sizes aren’t simply commercial engines in the Middle East; they’re cultural anchors. According to KPMG’s 2025 Global Family Business Report, 90% of the UAE’s private sector is just family-owned firms that contribute to roughly 60% of GDP and employ over 80% of the workforce in the GCC. This is a region on the cusp of change, where inheritance meets innovation.
A Region on the Cusp of Change
Across the Gulf, succession has long been a private, sometimes tense affair. Leadership in family-owned companies is often passed down from parent to child or divided managerial roles between children. Yet, as industries take a digitizing turn in recent years and while global competition intensifies, that simplicity no longer suffices.
According to Deloitte’s 2024 Family Business Survey, reports revealed that 72% of next-generation Gulf leaders want to move away from traditional family-led governance and adopt more professional structures, compared to only 45% of current founders.
This generational shift is largely visible in Bahrain’s diversified conglomerates, in Kuwait’s retail dynasties, and in Saudi Arabia’s trading giants. Now, the new generation speaks to a different tune. The “young blood” of this era brings on MBAs from London, coding experience from Silicon Valley, and ambitions from beyond the region. Yet, they also inherit brands built on trust, honor, and personal relationships, all strong values that can be as fragile as they are long-lasting.
Lessons from the Frontlines
Let’s consider the story of Al-Futtaim Group, established in the UAE. Al-Futtiam transformed from a family-owned trading company into a global retail and automotive powerhouse. For this change, the firm evolved carefully in governmental reforms, family constitution, and leadership that balanced tradition with expansion. Though not every Gulf enterprise operates at this scale, the lesson still holds true: leadership transitions thrive when the handover is intentional, structured, and respectful of continuity and change.
In Qatar, the smaller but equally ambitious family firms have begun appointing independent directors to head their boardrooms. This breaks the old patterns where only family members occupied key decision-making seats. “You don’t lose control by inviting expertise from outside; you gain perspective,” a young Qatari successor remarked during a regional leadership program in 2024 last year. This kind of mindset stands as both a testament to and a reflection of a new maturity shaping Gulf leadership circles today.
The Challenges of Letting Go
For many founders, succession isn’t just about business mechanics; it’s about identity. A 2023 survey by KPMG Middle East found that around 46% of Gulf family business founders struggle with completely letting go of operational control. Their hesitation isn’t to be mistaken for mistrust. Rather, their reservations are rooted in the belief that nobody else can replicate the resilience and instincts that built their generational-owned business.
Yet, as the markets accelerate, holding onto operational control in family businesses too tightly can choke innovation. While the intention behind it might come from a good place, this mindset can do more harm than good. In such contexts, leadership requires humility on both sides. For the sake of the older generation to hand over the reins and for the sake of the younger generation to respect the foundation laid before them.
Women at the Helm
Another subtle but powerful shift is the rise of women today in family businesses, especially in leadership roles. According to the Arab Women in the 2023 leadership report, while GCC boardrooms remain male-dominated, female representation is slowly growing, from 1.5% in 2011 to an impressive 6.8% in 2023. Family enterprises often serve as the first place where daughters step into leadership roles, gaining credibility and confidence through management of ancestral assets.
For example, in Oman, daughters of family business owners are now increasingly taking over operational duties in retail, logistics, and hospitality, the sectors once only male-led. This quiet revolution reshapes the very definition of Gulf leadership in 2025.
Building the Future of Leadership
As Gulf economies diversify under national ambitions and goals like the Saudi Vision 2030, UAE Centennial 2071, Oman Vision 2040, succession in family enterprises isn’t just a private matter anymore; it’s a public priority. The enduring ability of these firms reinforces the resilience of the region itself.
Future-oriented leaders are now focused on establishing succession roadmaps, classifying family constitutions, and incorporating corporate governance practices. “Professionalizing doesn’t dilute out our family values. Rather, it protects them,” notes a Dubai-based successor during the PwC Family Business Summit.
A Legacy Carried Forward
Now, back in Sharjah, as the boardroom conversation winds down for the day, the father leans back in his chair, shoulders taut and professional. He looks on as his son sketches a digital expansion plan on the whiteboard. The torch isn’t passed in a single moment but in hundreds of such shared decisions, where old instincts meet new ambitions.
Leadership in the Gulf today is no longer about inheritance alone. Instead, it also includes stewardship, protecting yesterday’s legacies while building tomorrow’s opportunities. For the family businesses that anchor this region, the future of leadership lies in mastering this harmonious balance. Because in the Gulf, when family firms thrive, nations do too.
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