GCC's assets under management reached $2.2tr in 2024, says report
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.
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.
Staff Reporter, Gulf Today
Saudi Arabia and the UAE lead retail mutual fund growth, while Abu Dhabi and Kuwait's SWFs manage the largest volume of assets in the region
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