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Succession and wealth planning are complex topics for any business owner — but for female entrepreneurs in the Middle East, the journey can come with added challenges. From family dynamics to access to quality advisors, the road to securing long-term financial stability often requires both professional and personal resilience.
Tim Denton TEP is the SEO of the DIFC Private Banking office for Habib Bank AG Zurich and also the head of the bank’s Wealth Structuring practice. He has been involved in wealth structuring for over 25 years, with 21 of those spent in Dubai. A qualified Trust and Estate Practitioner (TEP), Denton is a longstanding member of STEP Arabia and currently serves his second term as its Chair.
What are the challenges to planning for entrepreneurs in general?
One of the biggest challenges at the outset is persuading an entrepreneur, who will typically be fairly young for such conversations, that they need to consider succession planning. It’s not just about the possibility of them meeting an untimely end while running their business, but also the suitability of the current holding structure if the business grows or an exit is planned, either via a private sale or IPO.
What are the additional challenges for female entrepreneurs?
For female business owners, a significant challenge can be accessing good advisors and high-quality information. Being given the space by parents or male siblings to make independent decisions, without needing to follow ‘family guidance’, can also be difficult.
At HBZ, we’ve run a successful week-long ‘G3’ event for several years, bringing together the 30-40-year-old family members of our clients. We’ve seen excellent female participation. Sessions on business structuring are always lively, and the closed-door discussions with a family dynamics specialist have been especially appreciated.
What are the benefits of UAE common law foundations?
Recent changes in the UAE through common law foundations in the DIFC and ADGM have been a major step forward in succession planning. The vision of the UAE’s rulers in enabling such legislation is to be applauded — transforming a once difficult area into one with robust, accessible options.
These foundations are like incorporated entities but with no shareholders. No one owns the foundation, so if someone passes away, assets are unaffected. Entrepreneurs can hold their businesses under a foundation and clearly outline what should happen after their death — ensuring continuity without court processes.
The vast majority of wealth structuring discussions I have with clients now involve UAE foundations.
What about liquidity planning and financial protection for families?
Entrepreneurs must also consider how their family would be left financially if they pass away. Many businesses are closely tied to the founder and may fail without them. High-value life insurance (or Jumbo insurance) offers an affordable solution, providing funding and protecting both family members and business partners.
It allows a business to buy out a deceased partner’s shares — a win-win for both parties.
Any closing thoughts?
There is good advice available and some great solutions — but don’t wait until your business is ‘big enough’. The cost of delay could be much higher.
