Mubasher: The asset management industry in the GCC has significantly improved due to positive regulatory reforms and government support, according to a report by Marmore MENA Intelligence, a subsidiary of Kuwait Financial Centre (MARKAZ).

Over the past decade, the asset management landscape, particularly in Saudi Arabia, has seen substantial growth supported by capital market reforms, better business conditions, and active stakeholder participation, the report said.

It highlighted that product portfolio has expanded, offering more options to investors, with further growth potential due to ongoing reforms and investment product penetration.

Money market funds dominate in assets under management in the GCC, while equity funds are more numerous, the report found.

It observed that Investor demand for alternatives has diversified fund offerings, with private credit gaining interest, notably in Kuwait, which approved 13 of the 19 private credit funds from January 2023 to May 2024.

Furthermore, the report highlighted that banks remain the primary distribution channel, but fintech companies are increasingly significant. Asset managers are adopting digital platforms, cloud computing, AI, and robo-advisory services.

Regulatory frameworks in the UAE and Saudi Arabia are evolving – according to the report – supporting industry growth through initiatives like Saudi Arabia’s Public Investment Fund’s Manager Gate Platform.

The GCC asset management market is concentrated on a few large companies, with many small-scale managers, presenting opportunities for consolidation and economies of scale. However, smaller funds face operational cost pressures and viability challenges.