Market Size of GCC Mutual Fund Industry
| 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
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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.
