The Gulf Cooperation Council (GCC) asset management sector has reached $2.7 trillion in assets under management (AuM) as of 2025, reflecting a robust 10% year-on-year growth, marking one of the region's most impressive performances in over a decade. According to the Boston Consulting Group's latest Global Asset Management Report 2026, this growth is indicative of a pivotal moment for the industry, where future expansion will hinge less on market upswings and more on the ability of firms to attract investors, leverage artificial intelligence, and develop efficient distribution networks. As competition escalates on a global scale, GCC asset managers are well-positioned to harness the region's burgeoning wealth and redefine the structure of investment businesses. Retail investment is emerging as a significant growth driver, with retail AuM expanding by 14% in 2025 compared to a 9% increase in institutional assets, highlighting a shift towards individual investors in regional capital markets. Saudi Arabia leads the GCC in retail investment, with the UAE and Kuwait following closely behind, while institutional investors still dominate the landscape, holding 93% of total AuM. However, the report emphasizes that mere market growth is insufficient; firms must now focus on sustaining profitability amidst rising fee compression and technology investments. Distribution is becoming the key competitive advantage, as firms increasingly vie for control over distribution channels to effectively reach investors. Furthermore, the integration of artificial intelligence is set to revolutionize the industry's operating model, potentially reducing operating costs significantly while enhancing investment research and client service capabilities. Tokenisation is also identified as a transformative force, with projections suggesting the value of tokenised assets could soar to $14 trillion by 2030, reshaping ownership and distribution dynamics. As the GCC asset management industry embarks on this new phase, success will hinge on operational efficiency and the ability to deliver personalized client experiences, rather than simply the volume of assets managed.
Source: Wamda
