GCC's asset management market to hit $500bn in onshore assets by 2026

GCC's asset management market to hit $500bn in onshore assets by 2026

Assets under management in the GCC are projected to expand above the global average to hit about $500 billion in onshore assets by 2026, from $400 billion at the end of 2022, a report has shown.

More than 70 per cent of regional private wealth is in offshore accounts, which are typically favoured by high-net-worth individuals (HNWIs) and family offices, but this trend is shifting, according to estimates by Strategy& Middle East, a unit of global consultancy PwC.

“This projected growth underscores the potential of the GCC asset management industry amidst global economic challenges,” said Jorge Camarate, partner at Strategy& Middle East and leader of the company’s financial services practice.

“Despite the region's preference for offshore investing, increasing product sophistication and supportive regulatory initiatives are making onshore investment more appealing.”

The GCC asset management industry's projected growth comes at a time of global macroeconomic headwinds.

Rising interest rates, tighter liquidity, the fallout from high-profile bank failures and increased competition for environmental, social and governance-related investments are among the factors pushing the industry to adapt quickly.

Assets under management in the Middle East increased by $100 billion to $1.3 trillion in 2022 despite global economic challenges, management consultancy Boston Consulting Group said in a report in June.