Saudi Arabia, UAE propel GCC assets under management to $2.2 trillion

Abu Dhabi and Kuwait lead in managing sovereign wealth funds, influencing the regional financial landscape

The GCC region sees a 9 percent surge in assets under management, establishing itself as a financial hub.

Published: Thu 14 Aug 2025, 2:50 PM

The value of assets under management (AUM) across the Gulf Cooperation Council (GCC) region surged by 9 percent to $2.2 trillion in 2024, according to Boston Consulting Group (BCG). This growth signifies that the region is emerging as a global financial hub, positioning asset managers in the Gulf to compete with significant global players in the years ahead, the consultancy firm noted.

Saudi Arabia and the UAE have been highlighted as key drivers behind the expansion of the retail mutual funds sector. Additionally, Kuwait and Abu Dhabi have taken the lead in the domain of sovereign wealth funds, as reported by the consultancy firm.

“The region’s 9 percent AUM growth in 2024 underscores its rising prominence as a hub for institutional and retail capital,” remarked Lukasz Rey, managing director & partner and Middle East Head of Financial Institutions at BCG.

“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.”

Furthermore, Saudi Arabia’s Public Investment Fund (PIF) that its AUM soared by 19 percent to $913 billion by the end of 2024, achieving an annual average total portfolio return of 7.2 percent since 2017.

The Abu Dhabi Global Market (ADGM) also reported a remarkable 215 percent increase in total AUM in the third quarter of 2024 compared to the previous year.

Sovereign Wealth Funds’ influence

Moreover, the 23rd edition of BCG’s Global Asset Management Report, titled “From Recovery to Reinvention,” emphasizes that despite the robust growth, revenue expansion in 2024 was primarily driven by market performance rather than new investor inflows. This underscores the asset management industry’s susceptibility to global market dynamics and external economic forces. The report also details ongoing challenges such as persistent fee compression, evolving investor preferences, and accelerating digital disruption, which are compelling firms in the GCC to innovate on business models, streamline costs, and enhance strategic focus.

Lukasz Rey from BCG highlights that the next decade’s successful asset managers in the region will be those who embrace transformation, moving beyond mere recovery towards innovation in value delivery, client engagement, and operational models. This proactive shift is crucial as the GCC aims to not only increase its capital base but also position itself competitively on the global stage.

Notably, sovereign wealth funds (SWFs) in Abu Dhabi and Kuwait continue to wield significant influence in the regional market, managing the largest asset volumes, which reinforces the GCC’s strategic posture in global finance. Additionally, the dramatic 215% surge in AUM at ADGM reflects a burgeoning ecosystem conducive to international capital inflows and financial services diversification.