Shariah-compliant succession planning demand rises in UAE family offices

Wealth management advisers in the United Arab Emirates report rising demand from family offices for Shariah-compliant succession and estate planning as generational wealth transfer accelerates. Nazneen Abbas, Vice President at the Continental Group, said families are actively seeking out Shariah-compliant planning where once they settled for it, according to Khaleej Times on 15 October 2026. Islamic finance was sized at $5.98 trillion in 2024, with the UAE ranking as the fourth-largest Islamic finance jurisdiction globally. Islamic banks held 18 per cent of the country's banking assets, some $242.7 billion, in the first half of 2025.

Structuring challenges across jurisdictions#

Advisers report that families with businesses run from the UAE but property abroad face coordination challenges when structuring succession plans across multiple jurisdictions. Abbas said conventional wealth planning has decades of precedent in trusts and estate structuring, while Islamic wealth planning has matured significantly but faced the challenge of having fewer advisors who combine Shariah literacy with cross-border expertise. Neil De Sousa, Head of the Middle East at Schroders Wealth Management, said the more significant challenges tend to arise in wealth structuring, succession planning and cross-border estate planning, where families require solutions that are simultaneously Shariah-compliant, legally robust and effective across multiple jurisdictions. De Sousa said innovation is developing to offer wealthy families wealth planning options comparable to those available internationally while maintaining alignment with their beliefs and values.

Liquidity constraints in family business succession#

Muslim family businesses often stall at succession even when leadership decisions are clear, Abbas said. She said families often faced difficulty obtaining Takaful products that could deliver the cash needed to settle heirs without requiring a sale of the business or its division. Dividing a family business among three children or liquidating a property portfolio when a succession dispute arises presents practical obstacles, according to the report. A company valued at hundreds of millions may not generate immediate cash when the family requires it.

Product development in compliant wealth planning#

In June 2026, Manulife launched Maseera Indexed Takaful, a Shariah-compliant wealth-planning structure, Khaleej Times reported. Abbas said families no longer want to choose between financial planning and faith. The UAE Islamic banking sector held $242.7 billion in assets in the first half of 2025, representing 18 per cent of the country's banking assets. Islamic finance globally was sized at $5.98 trillion in 2024, with the UAE ranking fourth among Islamic finance jurisdictions.