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.
The region's 7 per cent annual growth last year bucked the global trend in which assets under management fell 10 per cent to $98 trillion, BCG said.
The GCC's asset management industry has “great potential”, with several tailwinds supporting healthy growth levels, despite the problems in global markets, Strategy& report said in its report on Tuesday.
Strong capital inflow into GCC countries on the back of favourable oil prices and record growth in initial public offerings are among the top tailwinds buoying the industry's expansion, the report said.
Higher oil prices provided GCC countries with large trade surpluses. Nations in the region collectively recorded a trade surplus of about $350 billion, according to the International Monetary Fund's estimates for 2022.
The ratio of trade surplus to gross domestic product was about 15 per cent for Saudi Arabia and the UAE, and more than 20 per cent for Kuwait and Qatar, according to the Washington-based lender.
In terms of strong capital inflows, the UAE is expected to attract 4,500 new millionaires this year, drawing the second-highest net inflow of high-net-worth individuals globally after Australia, according to a report by Henley & Partners.
Meanwhile, the Middle East set a record for IPO activity in 2022, bucking the global slowdown in equity capital markets activity.
This growth continued to gather momentum in the second quarter of this year as the volume of IPOs on regional bourses climbed by 44 per cent, driven by Saudi Arabia and the UAE, amid robust economic expansion, according to consultancy EY.
The Mena region's IPO pipeline for the second half of this year and for 2024 remains “very healthy”, EY said in a report in August.
Also boosting the GCC asset management industry's growth is its transition from “standard strategies to more advanced products” that meet the needs of more demanding investors, the Strategy& report said.
As the regional industry matures, it can attract and retain investment portfolios previously placed offshore with international players
Strategy&,
a unit of global consultancy PwC
“As the regional industry matures, it can attract and retain investment portfolios previously placed offshore with international players,” it said.
Financial regulators in GCC countries have also helped with initiatives to develop the asset management industry further.
“These trends position GCC asset managers for significant growth in the coming years,” the report said.
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Gertrude Bell's life in focus
A feature film
At one point, two feature films were in the works, but only German director Werner Herzog’s project starring Nicole Kidman would be made. While there were high hopes he would do a worthy job of directing the biopic, when Queen of the Desert arrived in 2015 it was a disappointment. Critics panned the film, in which Herzog largely glossed over Bell’s political work in favour of her ill-fated romances.
A documentary
A project that did do justice to Bell arrived the next year: Sabine Krayenbuhl and Zeva Oelbaum’s Letters from Baghdad: The Extraordinary Life and Times of Gertrude Bell. Drawing on more than 1,000 pieces of archival footage, 1,700 documents and 1,600 letters, the filmmakers painstakingly pieced together a compelling narrative that managed to convey both the depth of Bell’s experience and her tortured love life.
Books, letters and archives
Two biographies have been written about Bell, and both are worth reading: Georgina Howell’s 2006 book Queen of the Desert and Janet Wallach’s 1996 effort Desert Queen. Bell published several books documenting her travels and there are also several volumes of her letters, although they are hard to find in print. Original documents are housed at the Gertrude Bell Archive at the University of Newcastle, which has an online catalogue.
The story in numbers
18
This is how many recognised sects Lebanon is home to, along with about four million citizens
450,000
More than this many Palestinian refugees are registered with UNRWA in Lebanon, with about 45 per cent of them living in the country’s 12 refugee camps
1.5 million
There are just under 1 million Syrian refugees registered with the UN, although the government puts the figure upwards of 1.5m
73
The percentage of stateless people in Lebanon, who are not of Palestinian origin, born to a Lebanese mother, according to a 2012-2013 study by human rights organisation Frontiers Ruwad Association
18,000
The number of marriages recorded between Lebanese women and foreigners between the years 1995 and 2008, according to a 2009 study backed by the UN Development Programme
77,400
The number of people believed to be affected by the current nationality law, according to the 2009 UN study
4,926
This is how many Lebanese-Palestinian households there were in Lebanon in 2016, according to a census by the Lebanese-Palestinian dialogue committee
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
Match info
Bournemouth 0
Liverpool 4 (Salah 25', 48', 76', Cook 68' OG)
Man of the match: Andrew Robertson (Liverpool)
MATCH INFO
Europa League semi-final, second leg
Atletico Madrid (1) v Arsenal (1)
Where: Wanda Metropolitano
When: Thursday, kick-off 10.45pm
Live: On BeIN Sports HD
Our family matters legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E4-litre%20flat-six%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E525hp%20(GT3)%2C%20500hp%20(GT4)%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E465Nm%20(GT3)%2C%20450Nm%20(GT4)%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESeven-speed%20automatic%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh944%2C000%20(GT3)%2C%20Dh581%2C700%20(GT4)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3C%2Fp%3E%0A
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
UAE SQUAD
Omar Abdulrahman (Al Hilal), Ali Khaseif, Ali Mabkhout, Salem Rashed, Khalifa Al Hammadi, Khalfan Mubarak, Zayed Al Ameri, Mohammed Al Attas (Al Jazira), Khalid Essa, Ahmed Barman, Ryan Yaslam, Bandar Al Ahbabi (Al Ain), Habib Fardan, Tariq Ahmed, Mohammed Al Akbari (Al Nasr), Ali Saleh, Ali Salmin (Al Wasl), Adel Al Hosani, Ali Hassan Saleh, Majed Suroor (Sharjah), Ahmed Khalil, Walid Abbas, Majed Hassan, Ismail Al Hammadi (Shabab Al Ahli), Hassan Al Muharrami, Fahad Al Dhahani (Bani Yas), Mohammed Al Shaker (Ajman)
KILLING OF QASSEM SULEIMANI
