The GCC’s assets under management (AuM) surged to $2.2 trillion in 2024, marking a 9% growth from 2023, according to Boston Consulting Group’s (BCG) latest Global Asset Management Report: From Recovery to Reinvention. This milestone reflects the region’s expanding role in global finance, with Saudi Arabia and the UAE driving retail mutual fund growth, and Kuwait and Abu Dhabi’s sovereign wealth funds (SWFs) managing the largest asset volumes.
Regional Leaders Driving Growth
Saudi Arabia and the UAE continue to lead in retail mutual funds, supported by strong market demand and diversified investment strategies. Meanwhile, Kuwait and Abu Dhabi dominate in SWF management, leveraging their scale for strategic global investments.
Lukasz Rey, Managing Director & Partner and Middle East Head of Financial Institutions at BCG, noted that this growth underscores the GCC’s rising prominence:
“The next decade’s leaders will be those who redefine their future, not just endure challenges… Saudi Arabia and the UAE anchor regional momentum, while SWF dominance signals the potential for local asset managers to rival global giants.”
Mohammad Khan, Managing Director & Partner at BCG, added:
“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…”
Key Drivers and Opportunities:
The report attributes 2024’s revenue growth primarily to market performance, highlighting the industry’s sensitivity to external forces. Three global trends are shaping the future of asset management:
1-New Products for Changing Investor Demands
Asset managers have an opportunity to expand active exchange-traded funds (ETFs), model portfolios, and separately managed accounts. The retail private assets market—already over $300 billion—presents strong growth potential, though it requires simplified design, regulatory navigation, and better investor education.
2-Consolidation and Digital Transformation
Strategic partnerships and M&A are enabling firms to gain scale and boost technology capabilities. Larger asset managers can leverage operational synergies, while smaller players must adopt leaner, tech-driven models to remain competitive.
3-Cost Discipline with AI Integration
AI, including generative AI, is transforming front-to-back-office operations. From process automation to complex asset management, technology is enhancing efficiency, particularly for illiquid and alternative assets.
A Resilient Market Outlook
Nabil Saadallah, Managing Director & Partner at BCG, emphasized that consistent 9% growth across the GCC reflects a resilient market, where pension funds and SWFs are “quietly reshaping the region’s financial architecture.”
The growing focus on cost discipline, value creation, and advanced technology investment positions the GCC to strengthen its global standing.
With strategic diversification, technological adoption, and disciplined growth, the GCC asset management industry is poised to rival global leaders in the coming decade.
