This is a world class hotel and Al Nassem is a true five-star hotel up there with Four Seasons, Mandarin Oriental or Rosewood which is our usual pick.
They are great with families and the level of service is impeccable. We stayed in a Family Superior room which is perfect for one child, but I would probably take a bigger room I had one more kid. The breakfast at the Palmery was one of the best we've had in many years. The pool area and beach have lifeguards to ensure that kids and adults, can play safe in the water.
The small details make it. The always service minded staff, solving all problems also pays attention to details. Three things that stand out in level of detail: when room service cleaned our room, they placed the bottles of toothpaste, lotion, perfumes etc in descending height order; on the beach they had people offering guest to have their glasses cleaned for free and every day they brought gifts to the room such as waterbottles, to miniature chess games and wallets. When you have kids you always appreciative of accommodating staff when you're checking out from the hotel early. In our case, in-room breakfast, bag pick up and check-out + transport to the airport was managed without missing a beat.
We stayed there for six nights and can highly recommend Al Naseem for families with kids between 3-10 yrs old. We are probably coming back next year.