The GCC’s asset management industry grew to $2.2 trillion in assets under management (AuM) in 2024, a 9% increase from the previous year, according to the 23rd edition of Boston Consulting Group’s Global Asset Management Report, From Recovery to Reinvention. Growth in the retail mutual fund segment was led by Saudi Arabia and the UAE, while sovereign wealth funds based in Kuwait and Abu Dhabi continued to manage the largest asset volumes in the region.
BCG said the increase in AuM was driven largely by market performance rather than new investor inflows, highlighting the sector’s exposure to external economic conditions. The report noted that persistent fee compression, shifting investor preferences and accelerating digital disruption are forcing firms to rework their business models, improve operational efficiency and sharpen strategic priorities.
Lukasz Rey, BCG’s Middle East head of financial institutions, said the region’s growth underscored its rising prominence as a hub for institutional and retail capital, with Saudi Arabia and the UAE anchoring regional momentum. He added that the next decade’s leading firms will be those that redefine value delivery, client engagement and operations, moving from recovery to innovation.
Mohammad Khan, a managing director and partner at BCG, described the growth as evidence of a strategic pivot towards innovation and operational excellence, positioning the GCC to compete with leading global asset managers.
The report said that opportunities exist in developing new products to meet changing investor demand, such as active exchange-traded funds, model portfolios and separately managed accounts. It also highlighted the growing retail market for private assets, with semi-liquid private asset funds now exceeding $300 billion after expanding more than fivefold in four years. Challenges in this segment include regulatory barriers, complex product design and the need for greater investor education.
Industry consolidation and digital transformation are expected to continue, with mergers, acquisitions and strategic partnerships enabling firms to expand scale, diversify product offerings and build technology capabilities. Larger asset managers can achieve cost efficiencies through technology integration and streamlined operations, while those with less than $300 billion in AuM will need to focus on leaner business models.
Cost control is now a strategic priority across the industry, and artificial intelligence, particularly generative AI, is being deployed across front, middle and back offices to automate processes, improve decision-making and accelerate product delivery, especially in illiquid and alternative asset segments.
Nabil Saadallah, a managing director and partner at BCG, said that despite currency and methodology adjustments complicating historical comparisons, the GCC has demonstrated consistent annual growth of around 9%. He added that pension funds and sovereign wealth funds, led by institutions in Saudi Arabia and Kuwait, are reshaping the region’s financial landscape while maintaining a focus on cost discipline and investment in transformative technologies.
Globally, BCG reported that total AuM reached $128 trillion in 2024, a 12% increase on the previous year, with roughly 70% of revenue growth driven by market performance rather than fresh capital. The firm said that for the GCC to sustain its momentum, asset managers will need to adapt quickly to evolving market conditions, deepen technological integration and develop products aligned with changing investor needs.
