UAE urges families to tackle succession risks amid wealth shift
UAE’s richest families are on track to controling a combined $1 trillion by the end of next year, U.S. venture firm says
UAE’s richest families will control a combined $1 trillion by the end of next year. Getty Images.
The UAE is making an attempt to prevent the squabbling between heirs that often damages family businesses, which make up 90% of the country’s private companies.
Economy Ministry officials recently met with the heads of prominent business families to encourage them to improve succession planning by establishing formal structures around their wealth, Bloomberg reports.
While there are no official estimates, U.S.-based Dash Venture Labs projects that the UAE’s richest families will control a combined $1 trillion by the end of next year.
The increased involvement of family business in private equity and venture capital deals – riskier than the supermarkets and car dealerships favored by previous generations – has made it critical to introduce more formalized internal governance and processes, the news agency said