Nearly half of UAE entrepreneurs lack succession plans to secure family businesses, HSBC says

The National

3 days ago

Nearly half of the UAE's entrepreneurs do not have succession plans in place to pass their businesses on to the next generation, according to HSBC.
Forty-eight per cent of businesspeople in the Emirates have no such plans, only five per cent lower than the global average, Britain's biggest bank said on Wednesday in a spin-off study of its latest Global Entrepreneurial Wealth Report.
Around 39 per cent of the Emirates' entrepreneurs will pass their businesses to the next generation, while 10 per cent are selling them off, the study found. This compares to global averages of 34 per cent and 10 per cent, respectively.
Those who were able to take over family businesses say they felt trusted by the previous generation, the report found.
'Being prepared for business succession and clearly communicating with family will be key to long-term survival,' Gemma Wild, head of global collaboration for the Middle East and North Africa at HSBC Global Private Banking, said in the report. 'Opportunities are abundant, but only those who are prepared will succeed.'
The UAE has rapidly become a hub for entrepreneurs and the wealthy thanks to its strong economic growth and policy reforms it has rolled out to attract investors. Dubai and Abu Dhabi lead the top five preferred global locations for high-net-worth people looking to relocate, driven by personal tax incentives and a good quality of life, global property consultancy Savills said in an April report.
The UAE capital also ranked among the top five places for corporate relocations based on corporate tax and business environments, volumes of foreign direct investment, and economies and knowledge bases, the consultancy said.
The number of millionaires living in Dubai has doubled in the past decade, making it one of the world's fastest-growing wealth hubs, according to World's Wealthiest Cities Report 2025 by New World Wealth for Henley & Partners, released in April.
In 2024, Dubai had an estimated 81,200 millionaires, 237 centimillionaires, whose wealth is in the hundreds of millions, and 20 billionaires, according to the report. That compares to 72,500 millionaires, 212 centimillionaires and 15 billionaires in 2023.
'Entrepreneurs, by their very nature, are optimistic and recognise opportunities even within the most constrained circumstances,' HSBC said. 'Those in the UAE are no exception: they possess high levels of optimism around their personal wealth growing in the near future.'
UAE entrepreneurs feel more valued
UAE entrepreneurs felt more valued by society compared to their international peers, as they prioritise ethics over pursuing profits, the HSBC study found.
Around 86 per cent of businesspeople in the Emirates claim they feel more valued by the broader community, compared to the worldwide average of 79 per cent, it said.
Business decisions taken by UAE entrepreneurs are driven by purpose, with about 81 per cent saying they align their practices with personal values over profit, the report found. Additionally, 88 per cent of them act to make an impact on society – and this figure is even higher, at 91 per cent, for ultra-high-net-worth people, or those who have a fortune of at least $30 million, HSBC said.
'This could be the reason for their success: with a deep-seated purpose that drives them to succeed beyond mere financial gain,' the bank said.