GCC Mutual Fund Market Size (2024 - 2029)

The GCC Mutual Fund Market is experiencing growth, with significant potential for expansion despite challenges such as the impact of the COVID-19 pandemic on key industries like tourism and real estate in Dubai. The market's capacity, indicated by the assets under management relative to GDP, shows a substantial gap compared to the global average, highlighting opportunities for development. The market is predominantly managed by a few major players, and the focus on Shariah-compliant funds, particularly in Saudi Arabia, reflects the region's unique financial landscape. However, marketing and distribution challenges persist, particularly in reaching GCC nationals, where access is often limited to bank networks.

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Market Size of GCC Mutual Fund Industry

GCC Mutual Fund Industry Size
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 5.50 %
Market Concentration Medium

Major Players

GCC Mutual Fund Market Major Players

*Disclaimer: Major Players sorted in no particular order

GCC Mutual Fund Market Analysis

The GCC Mutual Fund Market is valued at USD 55 Billion currently and is expected to register a CAGR of greater than 5.5% during the forecasted period.

Dubai, which focuses on financial activities, was particularly severely impacted during the COVID-19 financial crisis, resulting in a near-default on its debt payments and a subsequent bailout by Abu Dhabi. On the other hand, Dubai has begun a sustained expansion phase, with large projects in the tourism and real estate industries, following several key restructurings and policy changes. The COVID-19 pandemic heavily damaged these industries, and Dubai faced a terrible year in 2020; however, because of rapid and strong leadership, Dubai was one of the first countries to emerge and restore international travel, which the authorities and investors thought would be a benefit to the economy.

GCC Asset Management Industry managed mutual fund assets of USD 55 billion as of December 2021. The assets under management (AuM)-to GDP ratio for the mutual funds in the GCC region stands at 3.3% compared to the 33.3% global average, implying the potential for growth of the mutual fund industry in the region. GCC mutual fund asset management market is concentrated among the top asset management companies, with the top 10 asset managers (out of 74 managers) accounting for 83% of the total assets being managed. With many GCC-domiciled mutual funds investing in local equities, bonds, or Sukuk and exclusively long the market, they typically need some degree of economic upswing and positive growth in stock markets or fixed income if investments are to grow.

Owing to GCC's affinity with Islamic Finance, the asset management industry has made significant progress in the area of Shariah-compliant funds, particularly in Saudi Arabia. Mutual funds face difficulty in marketing and distribution to GCC nationals, who are primarily reached through banks. AMCs often enjoy exclusive access to their parent bank's distribution network. This creates a situation where it is difficult for an AMC to compete if it does not have a network of bank branches.

GCC Mutual Fund Industry Segmentation

An understanding of the GCC mutual fund industry, regulatory environment, MF companies, and their business models, along with detailed market segmentation, product types, current market trends, changes in market dynamics, and growth opportunities. In-depth analysis of the market size and forecast for the various segments. The GCC Mutual Fund Industry is Segmented Based on the Fund Category (Equity, Money Market, Real Estate, and Other (Bonds, Commodities, Mixed)) and by Geography (Saudi Arabia, Qatar, Kuwait, Abu Dhabi, and Dubai). The report offers Market size and forecasts for the GCC Mutual Fund Market in value (USD) for all the above segments.

By Fund Type
Equity
Money market
Real Estate
Other Fund Types (Bond, Commodities, Mixed)
By Geography
Saudi Arabia
Qatar
Abu Dhabi
Kuwait
Dubai
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GCC Mutual Fund Market Size Summary

The GCC Mutual Fund Market is currently valued at a significant amount and is projected to experience robust growth over the coming years. The market is characterized by a concentration of assets among a few leading asset management companies, with the top firms holding a substantial majority of the total assets under management. Despite the region's affinity for Islamic finance and the progress made in Shariah-compliant funds, particularly in Saudi Arabia, the mutual fund industry faces challenges in marketing and distribution, primarily due to reliance on bank networks. The GCC equity markets have historically underperformed compared to global peers, impacting the growth of mutual funds, which are largely dependent on the regional capital markets' size and expansion.

The report highlights the active participation of major players in the GCC mutual fund market, including prominent companies such as Riyad Capital, NCB Capital, and Samba Capital & Investment Management Company. These firms are involved in various initiatives, such as the launch of new funds and strategic mergers, to enhance their market presence and offerings. Despite the abundant private wealth and liquidity in the region, asset gathering has been challenging, with equity mutual funds particularly affected by past financial crises. The market's potential for growth is underscored by the relatively low assets under management-to-GDP ratio, indicating opportunities for expansion in the mutual fund sector across the GCC.

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GCC Mutual Fund Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Prominence of Inslamic Funds in GCC Mutual Fund Industry

    3. 1.3 A Brief on Regulatory Environment

    4. 1.4 Insights on Various Types of Schemes or Funds Offered in Mutual Fund Industry

    5. 1.5 Technological Innovations Shaping The Industry

    6. 1.6 Market Drivers

      1. 1.6.1 Economic Growth

      2. 1.6.2 Rising Wealth and Income Levels

    7. 1.7 Market Restraints

      1. 1.7.1 Market Volatility

      2. 1.7.2 Limited Product Offerings

    8. 1.8 Porter's Five Forces Analysis

      1. 1.8.1 Bargaining Power of Buyers/Consumers

      2. 1.8.2 Bargaining Power of Suppliers

      3. 1.8.3 Threat of New Entrants

      4. 1.8.4 Threat of Substitute Products

      5. 1.8.5 Intensity of Competitive Rivalry

    9. 1.9 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Fund Type

      1. 2.1.1 Equity

      2. 2.1.2 Money market

      3. 2.1.3 Real Estate

      4. 2.1.4 Other Fund Types (Bond, Commodities, Mixed)

    2. 2.2 By Geography

      1. 2.2.1 Saudi Arabia

      2. 2.2.2 Qatar

      3. 2.2.3 Abu Dhabi

      4. 2.2.4 Kuwait

      5. 2.2.5 Dubai

GCC Mutual Fund Market Size FAQs

The GCC Mutual Fund Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)

Riyad Capital, NCB Capital, Samba Capital & Investment Management Company, HSBC Saudi Arabia Ltd and ANB Invest are the major companies operating in the GCC Mutual Fund Market.

GCC Mutual Fund Market Report Snapshots

GCC Mutual Fund Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)