GCC funds market to reach $500bn by 2026

The value of the asset management market in the GCC is forecast to exceed US$500 billion within the next three years, according to recent research.

The report published by Strategy & Middle East, a subsidiary of PwC, credits the growth potential of the Mena market to its ongoing sophistication in terms of investment products.

“Despite the region’s preference for offshore investing, increasing product sophistication and supportive regulatory initiatives are making onshore investment more appealing,” said Jorge Camarate, partner and head of the financial services practice at Strategy & Middle East.

The region’s asset management market has also been traditionally dominated by high-net-worth individuals looking to invest offshore.

And while the report estimates that 70% of private wealth in the region resides offshore, it also suggests there are “several tailwinds” that are shifting investment to the onshore market.

“Strong capital inflows into GCC countries, supported by favourable oil prices and record growth in initial public offerings (IPOs), have been critical growth drivers for the asset management industry,” said Aurélien Vincent, partner at Strategy & Middle East.

“As GCC countries continue to diversify their economies and deepen their capital markets, regional investors and institutions are poised to benefit from an expanding array of investment avenues and opportunities,” he added.

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