GCC wealth management landscape is shifting to address investor concerns around agility and technology

Zawya

4 hours ago

Trust in AI is on the rise with 71% of investors expecting wealth managers to incorporate AI into their product offerings
Investors in the region are actively engaging with advisors and have higher expectations around investment performance and product access
Dubai, UAE – According to the 2025 EY Global Wealth Research Report, the GCC wealth management landscape is undergoing a profound transformation, shaped by shifting client expectations and technological disruption. Investor behavior in the region reflects greater engagement with advisors, increased openness to switching providers, and heightened expectations around investment performance and product access.
Nearly 55% of GCC clients reported arranging more advisor meetings in response to market volatility, well above the global average. The importance of understanding how financial activities impact the client's financial health is nearly as important as portfolio allocation, indicating that investors now expect advisors to deliver holistic wealth management.
At the same time, multihoming is rising rapidly, with 36% of investors in the region expecting to increase their number of wealth management relationships, and nearly 50% expressing interest in working with more providers, pointing to a growing fragmentation of trust and loyalty. In parallel, clients are showing a strong preference for alternative investments, with 69% already allocating assets to these vehicles.
Mayur Pau, EY MENA Financial Services Leader, says:
'The EY Global Wealth Research Report shows that longstanding assumptions in wealth management are being disrupted by accelerating economic shifts and rapid technological change. This is heightening the urgency for wealth managers to offer more clarity, agility, and proactive guidance in an environment defined by uncertainty. Clients also expect greater depth and breadth of the product shelf than ever. Wealth management firms must be prepared to understand the drivers of satisfaction and ensure they are optimized independently of prevailing market conditions.'
GCC investors feel satisfied with the services provided by their primary wealth manager across all key dimensions, but they still see the task of managing their wealth becoming more intricate. Only 57% of the region's respondents have reached the 'high bar' of being well-prepared to meet their financial goals, which must be the target for all advised clients.
Rising expectations for AI integration
In the GCC, 13% of clients express a high level of trust in artificial intelligence (AI), showcasing their openness to AI-powered solutions. This figure is notably higher than in more mature markets, like North America (6%) and Europe (9%), and it is also competitive with Latin America (16%) and Asia Pacific (15%). Wealth managers in the region must leverage this trust to meet the evolving expectations of their tech-savvy client base.
The GCC is among the most enthusiastic regions globally when it comes to AI, with 71% of investors expecting wealth managers to incorporate AI into their product offerings. This number is even higher among mass affluents. On the other hand, clients are increasingly aware of the potential risks associated with AI, including data misuse and the accuracy of AI-driven insights.
To build trust, wealth managers must actively educate clients about AI's capabilities and the safeguards in place to protect their information. This includes communicating the ethical principles guiding AI use, ensuring compliance with regulations and demonstrating how AI can enhance – rather than replace – the human element of wealth management.
Clients seek less common fee arrangements
GCC investors are more cautious and proactive, emphasizing transparency, cost clarity and tailored offerings. While percentage-based fees on assets under management (AUM) are unpopular globally (15%), they remain relatively more accepted in the GCC (27%), with performance-based fees, fixed fees, subscription fees and combinations of fee structures losing popularity. These findings show that industry pricing mechanisms are out of step with client preferences, revealing an underlying opportunity for pricing optimization.
Concerns around hidden costs have decreased in the last few years, with firms making progress in improving fee transparency. Over 90% of clients in the region strongly believe they are being charged fairly for services rendered.
GCC clients cite better investment performance and returns (55%) and access to a wider array of investment products and services (53%) as their top two drivers to switch wealth management providers. Only 26% would opt for a different provider due to seeking lower fees for services.
Hamdan Khan, Partner, EY MENA Wealth and Asset Management, says:
'With investors increasingly expecting AI-powered solutions and holistic wealth management approaches, firms must act swiftly to align their strategies with these evolving demands. By investing in AI technologies, enhancing client engagement and prioritizing ethical data practices, wealth managers can position themselves for success in a rapidly changing landscape. The future of wealth management is not just about managing assets; it's about building relationships, fostering trust and leveraging technology to create exceptional client experiences.'
The biennial EY Global Wealth Research Report aims to help wealth managers align strategic priorities with deep, data-driven insights into client behavior, preferences and expectations. It also identifies clear trends in managing provider relationships, reallocating capital, and planning for intergenerational wealth transfer. For more information on the report and its findings, please visit: https://www.ey.com/en_gl/wealth- management-research
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