4 days ago
GCC's Asset-Management Sector Hits $2.2 Trillion
With market performance as the primary engine of that growth, rather than new investor inflows, the region remains somewhat exposed to fluctuations in global financial markets. Saudi Arabia and the UAE were the principal drivers behind retail mutual fund expansion, while the largest volumes of sovereign wealth fund assets were held in Kuwait and Abu Dhabi.
Lukasz Rey, managing director and partner and Middle East head of financial institutions at BCG, commented that the 9 per cent growth underscores the GCC's emergence as a capital hub, and he emphasised that asset managers who embrace innovation rather than simply endure headwinds will lead into the next decade. Mohammad Khan, also managing director and partner at BCG, highlighted the region's resilience and strategic shift toward innovation and operational excellence, positioning GCC-based asset managers to contend with global giants.
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Despite the solid headline growth, the report flags persistent industry concerns: fee compression, shifting investor preferences—particularly a move toward passive products—and rapid digital disruption, all of which are forcing firms to rethink business models, accelerate digitisation and cost innovation, and hone strategic priorities.
Globally, asset managers also enjoyed growth, with worldwide assets under management climbing to a record $128 trillion in 2024, a 12 per cent rise from the preceding year, as noted by BCG's Global Asset Management Report 2025. Market performance was responsible for approximately 70 per cent of the global revenue increase, underscoring the industry's sensitivity to external economic conditions.
Within that broader context, the GCC's performance marks it as a region of growing strategic importance. Retail mutual funds in Saudi Arabia and the UAE are gaining ground, while sovereign wealth funds in Abu Dhabi and Kuwait remain among the region's largest institutional investors. For example, forecasts suggest that GCC sovereign wealth funds may collectively manage up to $7.3 trillion by 2030, a trend driven by increasing diversification and deployment of global capital.
