The recent restructuring of the board at Majid Al Futtaim's holding company has brought renewed attention to the succession challenges faced by large family businesses.
The restructuring was directed by a special judicial committee in Dubai, following reported disagreements among the late founder's ten heirs. The company has now been converted into a 'public joint stock structure', and its board reconstituted with a combination of government appointees and family representatives.
While this case is not particularly remarkable, this is not the first time private family tensions have led to public resolution. In the 1990s, a disagreement between Majid Al Futtaim and his cousin Abdullah required direct intervention from the ruler of Dubai, ultimately leading to a formal split of the business empire. It was a necessary solution to a complex problem, and one that showed how private disagreements within family enterprises can have wider significance.
Indeed, this kind of state-led intervention may seem unusual, particularly to those from countries with traditionally Western legal frameworks, but it reflects the wider economic significance of large family enterprises in the region. These are not just private businesses; they are pillars of national economies. Their performance, size, and reach carry wider economic consequences. They affect employees, investor confidence, and market and regional stability. Governments, regulators and stakeholders cannot always stand by when succession issues are left unresolved.
While the Al Futtaim group remains operationally sound, the story highlights a point that we see time and time again in our work with clients, and something many families quietly grapple with: what happens when succession planning is left too late?
Succession planning is paramount in the context of family enterprise. Family businesses are deeply personal. They are shaped by trust, tradition and shared ambition. When they grow across generations and borders, it is natural for perspectives to diverge, and the line between personal and professional can be difficult to manage. What starts as one person's vision becomes a collective endeavour, often without clear structures to guide how ownership and decision-making should evolve. Even in the most united families, difficult questions emerge: who should lead, how will decisions be made, and is the next generation ready to step in?
These conversations can take time and need careful navigation. But when they are avoided altogether, it often leaves families with fewer choices and harder decisions. Without clear governance and succession frameworks in place, disagreements over control, direction or values can escalate quickly.
Good planning does not remove the emotional weight of transition. What it does offer is clarity. It allows families to work through difficult questions in private, with time to consider what is best for the business and for each individual. It avoids the need for public intervention at moments of crisis. It also provides space to identify the next generation's roles.
At Boodle Hatfield, we support families at every stage of this process with empathy and clarity. The best time to plan is before the pressure builds and the strongest legacies are the ones that are prepared to evolve. Whether it is preparing for a leadership transition, formalising structures behind the scenes, or simply starting the conversation, our aim is to make the process feel manageable and meaningful, not just necessary.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.