GCC Mutual Fund Industry - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The GCC Mutual Fund Industry is Segmented Based on the Fund Category (Equity, Money Market, Real Estate and Others (Bonds, Commodities, Mixed)), and by Geography (Saudi Arabia, Qatar, Kuwait, Abu Dhabi, and Dubai)

Market Snapshot

GCC Mutual Fund Industry Size
Study Period: 2018-2027
Base Year: 2021
CAGR: >5.5 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

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. These industries were heavily damaged by the covid-19 pandemic, 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 manages mutual fund assets of USD 55 billion as of December 2021. 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.

Scope of the Report

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 Others (Bonds, Commodities, Mixed)) and by Geography (Saudi Arabia, Qatar, Kuwait, Abu Dhabi, and Dubai).

By Fund Type
Equity
Money market
Real Estate
Others (Bond, Commodities, Mixed)
By Geography
Saudi Arabia
Qatar
Abu Dhabi
Kuwait
Dubai

Report scope can be customized per your requirements. Click here.

Key Market Trends

Emerging Leadership of Saudi Arabia in GCC Capital Markets

In GCC, there are two active asset classes within the industry: Mutual Funds and Private Equity & Other Alternative Assets. Mutual funds are, by and large, a function of the size and growth of the regional capital markets. GCC equity markets underperformed global peers during 2021, reporting significantly lower gains during the year.

Saudi Tadawul has traditionally been the biggest market in the GCC region. This is not surprising considering the relative size of KSA’s economy. Qatar and UAE are placed next in the order. The Capital Markets Authority (CMA) in Saudi Arabia is also actively improving the regulatory framework for listing and corporate governance with a view to building more depth.

gcc market capitalization

GCC Mutual Fund AuM By Fund Category

Asset gathering has been difficult in the region, as seen from the low size of mutual fund AuM compared to the GDP, in spite of the abundant private wealth and liquidity. Equity mutual funds, the primary vehicle for asset gathering, were hit hard by the global financial crisis of 2008, which led most investors to pull their money out, and the industry has not recovered since then. Equity Funds are predominant in this region. Bond Funds are a relatively new product, and since the GCC debt markets have only recently seen reforms, their size is also very small. Real estate funds, a popular choice of many GCC investors, have given negative returns since 2015 and so have been unable to increase their AUM.

AuM fund GCC

Competitive Landscape

The report includes an overview of MF companies operating across GCC. We wish to present detailed profiling of a few major companies which cover product offerings, regulations governing them, their headquarters, and financial performance. Currently, some of the major players dominating the market are listed below.

Recent Development

  • In 2022, Saudi National Bank (SNB) has announced the completion of the merger between NCB and Samba Financial Group, making it the largest and fastest merger in the history of the region. The merger included five key areas consisting of migrating personal and corporate customer accounts, migrating treasury, NCB Capital and Samba Capital customers, in addition to migrating other administrative sectors and the merger of both banks’ branches
  • in 2021, HSBC transfered its Saudi-based asset management business to Alawwal Invest, a subsidiary of Saudi British Bank (SABB). The agreement read that HSBC Saudi Arabia’s asset management, retail brokerage and retail margin lending businesses transferred to Alawwal Invest.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Prominence of Inslamic Funds in GCC Mutual Fund Industry

    3. 4.3 A Brief on Regulatory Environment

    4. 4.4 Insights on Various Types of Schemes or Funds Offered in Mutual Fund Industry

    5. 4.5 Technological Innovations Shaping The Industry

    6. 4.6 Market Drivers

    7. 4.7 Market Restraints

    8. 4.8 Porter's Five Forces Analysis

      1. 4.8.1 Threat of New Entrants

      2. 4.8.2 Bargaining Power of Buyers/Consumers

      3. 4.8.3 Bargaining Power of Suppliers

      4. 4.8.4 Threat of Substitute Products

      5. 4.8.5 Intensity of Competitive Rivalry

    9. 4.9 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Fund Type

      1. 5.1.1 Equity

      2. 5.1.2 Money market

      3. 5.1.3 Real Estate

      4. 5.1.4 Others (Bond, Commodities, Mixed)

    2. 5.2 By Geography

      1. 5.2.1 Saudi Arabia

      2. 5.2.2 Qatar

      3. 5.2.3 Abu Dhabi

      4. 5.2.4 Kuwait

      5. 5.2.5 Dubai

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Competition Overview (Market Concentration And M&A Deals)

    2. 6.2 Company Profiles

      1. 6.2.1 Riyad Capital

      2. 6.2.2 NCB Capital

      3. 6.2.3 Samba Capital & investment Management

      4. 6.2.4 HSBC Saudi Arabia Ltd

      5. 6.2.5 ANB Invest

      6. 6.2.6 Saudi Hollandi Capital

      7. 6.2.7 Al Rajhi Capital

      8. 6.2.8 Jadwa Investment

      9. 6.2.9 Caaam Saudi Fransi

      10. 6.2.10 BNP Paribas Asset Management*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The GCC Mutual Fund Industry market is studied from 2018 - 2027.

The GCC Mutual Fund Industry is growing at a CAGR of >5.5% over the next 5 years.

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

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!