Private wealth litigation on the rise in the Middle East

The number of ultra-high-net-worth individuals (UHNWIs) in the Middle East grew by 6.2% in 2023, reaching approximately 18,800 individuals. In 2024, the UAE welcomed 7,200 new millionaires, building on an influx of 4,700 in 2023 and 5,200 in 2022. By the end of December 2024, the total number of dollar millionaires in the UAE stood at 130,500, firmly establishing the country as the 14th-largest wealth market globally. 

Over the past decade, the majority of the UAE’s inbound millionaires have originated from India (31%), followed by the wider Middle East (20%), Russia and the CIS (14%), and the UK and Europe (12%).

This remarkable growth, not just from the UAE but across the wider Gulf region, is fuelling the proliferation of family offices and increasing the complexity of wealth management structures—inevitably giving rise to a higher incidence of disputes. What was once a largely discreet area of private wealth in the Gulf is now facing a new reality: a clear uptick in litigation. As families become more global, assets more diversified, and generational expectations increasingly divergent, disagreements over wealth are emerging with greater frequency and complexity.

At Boodle Hatfield, we are seeing four key trends driving this shift, each of which is reshaping the way we advise our clients.

Privacy Under Pressure

Privacy remains a core concern for many families, and it is no surprise that we have seen increased use of private wealth mediation and arbitration across regions such as the Middle East and Africa. However, the non-binding nature of many alternative dispute resolution mechanisms often fails to provide the level of certainty and finality that high-net-worth families or their trustees require—particularly where significant structures and interests are at stake.

Offshore jurisdictions present a compelling solution. Locations such as Bermuda, the Cayman Islands, Jersey, and Guernsey are frequently preferred for their robust confidentiality regimes, offering a discreet forum for resolving disputes involving family members and the structures that hold their wealth. These jurisdictions are particularly effective where courts are asked to examine the governance or administration of private trusts—matters into which the public typically has no right to intrude.

Even in more contentious hearings, proceedings can often be held in private where there are compelling reasons—for example, if the dispute involves minor beneficiaries or the disclosure of sensitive information could endanger vulnerable or high-profile individuals. Anonymised judgments and sealed court files provide an added layer of protection, further enhancing the appeal of these jurisdictions for privacy-conscious families.

This stands in contrast to many traditional onshore jurisdictions, including the UK, which are increasingly moving toward principles of open justice and offer limited scope for resolving private wealth disputes away from public scrutiny. For many families, this is a significant deterrent, exposing them to reputational, financial, and commercial risk.

These risks are particularly acute when family wealth structures include substantial interests in trading or operating businesses. Public disputes can depress valuations, disrupt IPO plans, and attract unwanted regulatory attention. For clients in the Gulf—especially those who are high-profile or politically exposed—there is also the added concern of personal security being compromised.

Cross-Border Complexities

Family wealth rarely resides within a single jurisdiction—and neither do the disputes that arise from it. Differing legal systems may apply conflicting rules, leading to disputes over which country’s laws govern a trust, a will, or a family enterprise.

These jurisdictional questions are often anything but straightforward and demand careful, expert navigation. Tax considerations frequently take centre stage, particularly where beneficiaries or assets are situated in high-tax environments. Matters become even more complex when jurisdictions do not recognise trusts at all—whether legally or culturally—posing unique challenges for enforceability and administration.

Effectively managing these complexities requires not only deep technical knowledge but also a coordinated, cross-border strategy. Advisors must be fluent in multi-jurisdictional structuring to ensure that arrangements withstand scrutiny, regardless of where a challenge might arise.

The Expanding Scope of Disputes

Private wealth litigation is no longer limited to traditional disputes over trusts and wills. We are seeing a notable rise in conflicts involving digital assets such as cryptocurrencies, ownership of high-value artworks, and disagreements over investment strategies or the future direction of family businesses.

As family structures evolve across generations, so do the dynamics and points of tension. Many disputes are triggered by uncertainty and a lack of governance. Ambiguity in wills, trust deeds, or governance frameworks often serves as the flashpoint for conflict. Regular reviews, clear documentation, and forward planning are essential to mitigate these risks and preserve family cohesion.

Private Wealth Lawyers as Strategic Planners

There is an increasing recognition that legal advisors should not only step in when disputes arise, but be involved from the outset to help prevent them. Clients are now turning to us earlier to identify potential vulnerabilities, design resilient structures, and pre-empt areas of possible contention within family groups.

This shift from reactive litigation to proactive risk management allows us to support families in a more strategic way—reducing the likelihood of future disputes and ensuring that, if they do occur, they can be handled discreetly and from a position of strength.

Conclusion

As global wealth becomes more mobile, family structures more international, and generational expectations more diverse, private wealth disputes are set to remain an enduring feature of the landscape. Yet with careful planning, thoughtful governance, and a focus on both design and defensibility, families can mitigate the risks and preserve harmony for future generations.

At Boodle Hatfield, we understand the evolving pressures facing international families, family offices, and trustees. Our multidisciplinary team combines deep structuring expertise with litigation insight, helping clients manage their affairs with confidence and clarity—safeguarding their legacy for the long term.