In 2024, the Gulf Cooperation Council’s (GCC) asset management sector reached USD 2.2 trillion in assets under management a 9% increase compared to the previous year according to the Boston Consulting Group’s 23rd Global Asset Management Report, titled “From Recovery to Reinvention.” This growth was primarily driven by market performance rather than new investor inflows, showcasing the region’s vulnerability to external market forces. Retail mutual funds in Saudi Arabia and the United Arab Emirates led the expansion, while sovereign wealth funds in Abu Dhabi and Kuwait continued to manage the largest volumes of assets.

The report emphasizes that the GCC is transitioning from recovery toward reinvention. Asset managers are responding to fee compression, shifting investor preferences, and digital disruption by innovating their business models and cost structures. There is a growing focus on developing products like active ETFs, model portfolios, and separately managed accounts, as well as expanding retail access to private assets, where semi-liquid private asset funds have grown fivefold in four years now exceeding USD 300 billion. Firms are also pursuing strategic M&A and partnerships to scale operations, enhance offerings, and build technology capabilities. Notably, generative AI is emerging as a key enabler across front, middle, and back-office functions, helping firms streamline processes and unlock operational efficiency.