The GCC's Assets Under Management reached USD 2.2 trillion in 2024, representing 9% growth

Al Bawaba

3 days ago

The GCC's asset management industry grew to $2.2 trillion in Assets under Management (AuM) in 2024, a 9% increase from the previous year, according to the 23rd edition of the Global Asset Management report, titled 'From Recovery to Reinvention' by Boston Consulting Group (BCG).
In the retail mutual fund sector, Saudi Arabia and the UAE have been the principal contributors to growth. As for sovereign wealth funds (SWFs), the largest volumes of assets have been managed by major players in Kuwait and Abu Dhabi.
Lukasz Rey, Managing Director & Partner and Middle East Head of Financial Institutions at BCG, said: "The next decade's leaders will be those who redefine their future, not just endure challenges. The region's 9% AuM growth in 2024 underscores its rising prominence as a hub for institutional and retail capital. With Saudi Arabia and the UAE anchoring regional momentum, the GCC's strategic diversification and SWF dominance signal a future where local asset managers could rival global giants. Recent market volatility offers a chance for change, prompting asset managers to move from recovery to innovation - reimagining value delivery, client engagement, and business operations.'
According to the report, the revenue growth in 2024 was driven by market performance rather than investor inflows, underscoring the industry's vulnerability to external forces. Meanwhile, persistent fee compression, shifts in investor preferences, and digital disruption are pushing firms to redesign their business models, accelerate cost innovation, and sharpen their strategic focus.
Mohammad Khan, Managing Director & Partner at BCG, said: 'The GCC's asset management industry has demonstrated remarkable resilience and strategic growth, achieving $2.2 trillion in Assets Under Management (AuM) in 2024. With Saudi Arabia and the UAE driving retail mutual fund expansion and Kuwait and Abu Dhabi leading in sovereign wealth fund dominance, the region is steadily establishing itself as a global financial powerhouse. As highlighted in BCG's research, this growth reflects not only recovery but a strategic pivot towards innovation and operational excellence. The next decade will be defined by asset managers who prioritize client-centric transformation, technological advancement, and leaner business models, positioning the GCC as a formidable force capable of rivaling global industry leaders.'
The report highlights three forces reshaping the industry globally:
1. Opportunities to Create New Products in Response to Changing Investor Demands
Looking forward, asset managers have two opportunities to win in an evolving product and distribution landscape. First, they can claim a larger portion of a shrinking but important pool of actively managed assets - specifically, in active exchange-traded funds (ETFs), model portfolios, and separately managed accounts. Second, they can mobilize to play a key role in the growing market for delivering private assets to retail clients.
Retail access to private markets is an expanding frontier, with semi-liquid private asset funds expanding over five times in four years, surpassing $300 billion. This growth is fueled by the demand for better risk-adjusted returns and solid long-term performance, though challenges include navigating regulatory barriers, simplifying product design, and enhancing investor education.
2. A Critical Need for Consolidation and Digital Transformation
Strategic partnerships and M&A are reshaping the landscape as firms race to gain scale, broaden offerings, and build technology capabilities. Those overseeing the largest amount of assets can drive costs down through technological synergies, streamlined operations, and process efficiencies, while those managing less than $300 billion must emphasize leaner models.
3. A Renewed Focus on Cost
As asset managers emphasize operational efficiency, enhanced decision making, and client engagement, AI has emerged as a key accelerator. GenAI is transforming process automation and product delivery - especially in complex areas such as illiquid and alternative assets - and is now being deployed across the front, middle, and back offices.
Nabil Saadallah, Managing Director & Partner at BCG, said: "While currency adjustments and methodology revisions cloud historical comparisons, the consistency of 9% annual growth across the region and GCC reveals a resilient market. Pension funds and SWFs, led by Saudi and Kuwaiti institutions, are quietly reshaping the region's financial architecture, blending tradition with global asset management rigor. Notably, cost discipline is now a strategic focus with firms prioritizing unique value creation, embracing lean practices, and investing heavily in transformative technologies."