Succession Planning In The Middle East

INTRODUCTION

Many Middle Eastern families face the pressure of transiting their businesses to the next generation, but all too often family leaders defer the transition, for a multiple of reasons, for as long as possible. Consequently, succession planning in the region is a highly sensitive and very emotional issue to tackle.

WHAT ARE THE REASONS FOR FAMILY BUSINESSES NOT BEING TRANSITIONED?

Many Middle Eastern businesses are still in the first generation so there is a lack of a track-record of best practice succession planning. This lack of track-record is not helped by some family feuds, over billions of dollars, being played out in the regional courts. Consequently, other families witnessing such feuds become sensitive about avoiding their own family hostilities and delay succession planning.