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.

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.

MARKETS THIS MORNING-

Asian markets are broadly in the green, as Japanese indices cheer news of stronger-than-expected growth in Japan’s economy in 2Q 2025. On the flip side, the Hang Seng is down more than 1%. Over on Wall Street, futures point to another strong open after the S&P 500 notched its third consecutive record high yesterday.

ADX

10,251

-0.3% (YTD: +8.8%)

DFM

6,095

+0.1% (YTD: +18.2%)

Nasdaq Dubai UAE20

5,006

-0.5% (YTD: +20.2%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.2% o/n

4.2% 1 yr

TASI

10,834

+0.7% (YTD: -10.0%)

EGX30

35,576

-0.8% (YTD: +19.6%)

S&P 500

6,469

+0.0% (YTD: +10.0%)

FTSE 100

9,177

+0.1% (YTD: +12.3%)

Euro Stoxx 50

5,435

+0.9% (YTD: +11.0%)

Brent crude

USD 66.90

+0.1%

Natural gas (Nymex)

USD 2.85

+0.4%

Gold

USD 3,381.2

-0.1%

BTC

USD 118,002

-4.4% (YTD: +24.9%)

Chimera JP Morgan UAE Bond UCITS ETF

AED 3.59

0.0% (YTD: +3.1%)

S&P MENA Bond & Sukuk

148.35

-0.1% (YTD: +6%)

VIX (Volatility Index)

14.83

+2.4% (YTD: -14.5%)

THE CLOSING BELL-

The DFM rose 0.1% yesterday on turnover of AED 720.8 mn. The index is up 18.2% YTD.

In the green: Sukoon Takaful (+8%), Salik (+4.1%) and Chimera S&P UAE Shariah ETF- Share class B - Income (+3.8%).

In the red: National Industries Group Holding (-4.2%), Takaful Emarat (-3.1%) and Commercial Bank of Dubai (-3%).

Over on the ADX, the index fell 0.3% on turnover of AED 929.6 mn. Meanwhile, Nasdaq Dubai is down 0.5%.

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