GCC asset management assets rise to $2.7 trillion in 2025 as retail growth accelerates, says BCG

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GCC asset management assets rise to $2.7 trillion in 2025 as retail growth accelerates, says BCG

Assets under management (AuM) across the GCC asset management industry reached $2.7 trillion in 2025, recording 10% annual growth compared with 2024 and marking one of the region’s strongest performances in more than a decade, according to findings released in Boston Consulting Group’s (BCG) Global Asset Management Report 2026: An Imperative for Growth.

The report highlights strong momentum across both institutional and retail investment segments, with retail assets emerging as the fastest-growing category in the region.

Retail segment outpaces institutional growth

According to BCG’s analysis, retail assets expanded by 14% during 2025, outperforming institutional assets, which recorded 9% growth.

Despite stronger retail momentum, institutional capital continues to dominate the regional market structure, accounting for 93% of total GCC assets under management, while retail assets represent 7%.

The findings point to growing investor participation and an evolving competitive landscape across the region’s financial services sector.

Saudi Arabia remains the region’s growth anchor

The report identifies Saudi Arabia as the leading market supporting regional expansion.

The Kingdom continues to hold the largest share of retail mutual funds and exchange-traded funds (ETFs) across both the GCC and broader Middle East markets.

Among regional institutional investors, the General Organization for Social Insurance Public Pension Agency (GOSI-PPA) remains the largest pension fund in the GCC, followed by Kuwait’s WAFRA.

Within sovereign wealth management, Kuwait Investment Authority recorded the largest externally managed assets under management, followed by the Abu Dhabi Investment Authority.

Distribution emerges as the new battleground

BCG noted that competition across global asset management is undergoing structural change.

As investment products become increasingly standardized, firms are placing greater emphasis on distribution capabilities, institutional relationships, advisory networks, and platform access to sustain growth.

According to Lukasz Rey, Managing Director & Partner and Middle East Head of Financial Institutions at BCG, asset managers operating in the GCC continue to view the region as a strategic market despite broader market uncertainty.

He noted that firms investing in stronger distribution networks and technology transformation are likely to be better positioned for long-term growth.

AI expected to reshape operating models

The report identifies artificial intelligence as one of the most significant forces influencing the future of asset management.

Globally, BCG estimates that asset managers could reduce operating costs by 25% to 35% over the next three to five years, while expanding research capabilities and increasing client coverage through automation and scalable personalization.

However, the report notes that many firms remain in the early stages of AI adoption and continue to focus on pilot initiatives rather than enterprise-wide transformation.

Mohammad Khan, Managing Director & Partner at BCG, stated that Middle East asset managers have an opportunity to accelerate modernization by embedding AI and digital capabilities into core business operations.

Tokenization emerges as a future growth catalyst

Beyond AI, BCG identifies tokenization and digital assets as emerging forces that may reshape market access and investment structures.

The report projects that tokenized real-world assets could reach $14 trillion by 2030 and expand to $55 trillion by 2035, creating new opportunities across ownership models, investment products, and distribution channels.

According to Nabil Saadallah, Managing Director & Partner at BCG, the convergence of AI, tokenization, and evolving investor expectations is creating a more agile and competitive market environment.

He noted that asset managers capable of delivering personalized investment solutions at scale may be best positioned to unlock long-term value.

As growth becomes increasingly driven by competition rather than market expansion alone, the report concludes that distribution strength, technology investment, and scalable operating models will define the next phase of GCC asset management development.