According to Boston Consulting Group (BCG), the Gulf Cooperation Council (GCC) region’s assets under management (AUM) increased by 9% to USD 2.22 trillion in 2024.
The consulting firm claimed that the expansion also shows that the Gulf is developing into a major global financial centre, and that asset managers there are ready to take on major international firms in the future.
The growth of the retail mutual fund industry has been attributed to Saudi Arabia and the United Arab Emirates (UAE). The consulting firm claims that Kuwait and Abu Dhabi have also emerged as leaders in the field of sovereign wealth funds.
“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,” noted Lukasz Rey, Managing Director & Partner and Middle East Head of Financial Institutions at BCG.
“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,” the official stated.
The Public Investment Fund (PIF) of the Kingdom announced on Wednesday that its AUM increased by 19% to USD 913 billion by the end of 2024, with an average annual return of 7.2% for the entire portfolio since 2017. In the third quarter of 2024, the Abu Dhabi Global Market (ADGM) reported a 215% increase in total AUM over the same period the previous year.
In 2024, revenue growth was primarily driven by market performance rather than investor inflows, underscoring the industry’s vulnerability to external forces. The BCG report further noted that persistent fee compression, shifts in investor preferences, and digital disruption are pushing firms to redesign business models, accelerate cost innovation, and sharpen strategic focus.
Mohammad Khan, MD and Partner at BCG, noted, “The GCC’s asset management industry has demonstrated remarkable resilience and strategic growth, achieving USD 2.2 trillion in 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. 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 prioritise client-centric transformation, technological advancement, and leaner business models, positioning the GCC as a formidable force capable of rivalling global industry leaders.”