GCC wealth management transformed as investors embrace AI and demand transparent solutions with strong returns

Arabian Business

07-07-2025

The GCC's wealth management sector is undergoing a seismic shift, with clients demanding more personalised, AI-powered, and transparent financial services, according to the 2025 EY Global Wealth Research Report.
The study reveals that 55 per cent of GCC investors have increased engagement with financial advisors amid market volatility—significantly above the global average.
Clients now expect wealth managers to deliver a more holistic service, placing as much emphasis on financial wellbeing and product variety as on portfolio performance.
GCC wealth management
Multihoming is on the rise, with 36 per cent of GCC investors looking to increase their number of wealth management relationships.
Almost half (50 per cent) are open to working with multiple providers—highlighting a growing trend toward diversification and lower brand loyalty.
Simultaneously, 69 per cent of clients are allocating capital to alternative investments, pointing to a sophisticated appetite for diversification.
Mayur Pau, EY MENA Financial Services Leader, said: '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.'
The GCC leads globally in investor trust in artificial intelligence. While just 6 per cent of North American clients trust AI-powered advice, the figure rises to 13 per cent in the GCC.
More than 70 per cent of regional investors expect financial managers to integrate AI into their services—especially younger and mass affluent clients.
Despite this enthusiasm, clients remain cautious. Key concerns include data misuse and the reliability of AI-generated insights. Experts say the solution lies in education, transparency, and ethics-driven AI implementation.
Hamdan Khan, Partner, EY MENA Wealth and Asset Management, said: '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.'
Unlike global trends, 27 per cent of GCC clients are still comfortable with percentage-based fees on assets under management—compared to only 15 per cent globally.
Subscription models and fixed fees are less favoured. However, confidence in fee transparency is rising, with over 90 per cent of clients believing they are being charged fairly.
Still, performance speaks loudest. The top two reasons GCC investors switch providers are:
Better investment performance and returns (55 per cent)
Wider product and service offerings (53 per cent)
Only 26 per cent said lower fees would prompt a provider switch, showing that value and results matter more than cost alone.
The EY report concludes that successful firms must realign their models to match evolving expectations. That means investing in AI, expanding access to alternative investments, improving pricing structures, and focusing on comprehensive, client-first advice.