GCC’s assets under management rose 9% y-o-y in 2024, with the UAE and KSA leading growth

The GCC’s asset management industry grew its assets under management (AUM) to USD 2.2 tn in 2024, up 9% from the previous year, according to a statement from Boston Consulting Group (BCG). Retail mutual fund growth was led by Saudi Arabia and the UAE, while sovereign wealth funds in Kuwait and Abu Dhabi accounted for the largest institutional volumes.

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It’s a good time to be an asset manager in the region: “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,” said Lukasz Rey, Middle East head of financial institutions at BCG. “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,” he added.

How can GCC asset managers become the next industry giants? By being at the forefront of the shift towards more client-centric, technologically advanced, and leaner business models, Mohammad Khan, managing director and partner at BCG, said.

Globally, the asset management industry’s total AUM hit USD 128 tn in 2024, up 12% y-o-y, extending the rebound from the 2022 downturn, according to BCG’s latest Global Asset Management report (pdf). Global revenues rose USD 58 bn in 2024, with USD 42 bn from market performance and USD 16 bn from net inflows. More than 70% of global revenue growth came from market performance, as major indices like the S&P 500 and Nasdaq rallied, but half of the growth was offset by fee compression and the shift to lower-cost products.

Active funds saw USD 0.1 tn in global outflows in 2024, while passive products drew USD 1.6 tn in inflows, as passive funds continue to gain popularity. Heavy redemptions from North America — USD 337 bn — were large enough to push worldwide active fund flows into negative territory despite inflows in every other region.

Fixed-income funds attracted USD 700 bn globally, while active ETFs booked USD 325 bn in inflows, nearly USD 300 bn of which came from North America. Active ETF AUM has expanded at a 39% CAGR over the past decade, with actively managed products accounting for 44% of all ETF launches in 2024.

THE CLOSING BELL: TADAWUL-

The TASI rose 0.7% last Thursday on turnover of SAR 4.4 bn. The index is down 10.0% YTD.

In the green: Thimar (+10.0%), Sidc (+10.0%) and SPPC (+5.6%).

In the red: Elm (-3.4%), Theeb (-3.0%) and Nice One (-2.6%).

THE CLOSING BELL: NOMU-

The NomuC rose 1.1% last Thursday on turnover of SAR 54.5 mn. The index is down 15.4% YTD.

In the green: Group Five (+30.0%), Future Care (+17.6%) and Osool and Bakheet (+13.8%).

In the red: Riyal (-15.4%), Balady (-9.8%) and Mayar (-8.2%).

CORPORATE ACTIONS-

#1- Tihama Advertising, Public Relations and Marketing Company’s board approved a 42.7% capital reduction to SAR 229.2 mn, down from SAR 400 mn, through the cancellation of 17.1 mn shares, it said in a Tadawul disclosure on Thursday. The move comes after the board greenlit a separate 43.49% capital reduction in March.

#2- Arabian Plastic Industrial Company’s board recommended the distribution of SAR 7.5 mn in interim dividends for 1H 2025 at SAR 1 apiece, it said in a disclosure to Tadawul on Thursday. The distribution date is yet to be determined, following shareholders’ approval.

#3- Qassim Cement Company’s board approved a SAR 87.8 mn dividend payout for 2Q 2025 at SAR 0.8 apiece, it said in a disclosure to Tadawul on Thursday. The payout is set to be distributed on 22 September.