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RIYADH: The Gulf Cooperation Council’s asset management industry grew to $2.2 trillion in assets under management in 2024, up 9 percent from 2023, according to Boston Consulting Group.

BCG’s Global Asset Management report, “From Recovery to Reinvention,” identified ����ֱ�� and the UAE as key drivers of retail mutual fund growth, while Kuwait and Abu Dhabi’s sovereign wealth funds held the largest share of regional assets.

The GCC sector is in a strong growth phase, underpinned by sovereign fund strength, expanding retail investment, and strategic diversification. BCG notes the region is navigating global market volatility while positioning itself to compete with the world’s leading asset managers.

“The next decade’s leaders will be those who redefine their future, not just endure challenges. The region’s 9 percent AuM growth in 2024 underscores its rising prominence as a hub for institutional and retail capital,” said Lukasz Rey, managing director and partner and Middle East head of financial institutions at BCG.

He added: “With ����ֱ�� and the UAE anchoring regional momentum, the GCC’s strategic diversification and SWF dominance signal a future where local asset managers could rival global giants.”

Rey noted that recent market volatility presents an opportunity for transformation, prompting asset managers to rethink value delivery, client engagement, and operational strategies.

The report found that 2024 revenue growth was largely driven by market performance rather than new investor inflows, highlighting the sector’s sensitivity to external forces. Ongoing fee pressure, shifting investor preferences, and digital disruption are pushing firms to revamp business models, prioritize cost efficiency, and refine strategic focus.

Mohammad Khan, managing director and partner at BCG, emphasized that the region is steadily establishing itself as a global financial powerhouse.

“����ֱ�� and the UAE are driving retail mutual fund expansion, while Kuwait and Abu Dhabi lead in sovereign wealth fund dominance,” he said.

The report highlights three global forces shaping the asset management sector. First, there is growing opportunity to develop new products in response to evolving investor demands, including active exchange-traded funds, model portfolios, and separately managed accounts.

Retail interest in private assets is also surging, with semi-liquid private funds growing more than fivefold in four years to surpass $300 billion.

Second, consolidation and digital transformation are reshaping the industry. Firms are pursuing scale, expanding offerings, and investing in technology.

Larger players can cut costs through tech partnerships, while smaller firms are adopting leaner business models to remain competitive.

Finally, a renewed focus on cost efficiency is driving adoption of artificial intelligence — particularly generative AI — to automate processes and enhance performance across front, middle, and back-office operations.

“Pension funds and SWFs, led by Saudi and Kuwaiti institutions, are quietly reshaping the region’s financial architecture,” said Nabil Saadallah, managing director and partner at BCG. 

He added: “Cost discipline is now a strategic focus, with firms prioritizing unique value creation, embracing lean practices, and investing in transformative technologies.”

RIYADH: ����ֱ��’s Export-Import Bank boosted credit facilities by 44 percent in the first half of the year, reaching SR23.61 billion ($6.29 billion), as the state lender stepped up efforts to accelerate non-oil export growth. 

Export financing disbursements rose 26.2 percent to SR8.87 billion in the six months to June, while credit insurance coverage surged 58.8 percent to SR14.74 billion, the Saudi Press Agency reported. 

The growth supports the bank’s mandate to help double the Kingdom’s industrial exports from SR254 billion in 2022 to SR557 billion by 2030, and SR892 billion by 2035, in line with the National Industrial Strategy. 

“The leap achieved by the bank in the credit facilities provided during this year reflects the extent of the tireless efforts and strategic plans that seek to achieve all economic development goals,” said Saad bin Abdulaziz Al-Khalb, CEO of Saudi EXIM Bank. 

He added that the bank’s progress since its inception underscores its role in building a diversified and sustainable national economy. 

The lender launched the “Bridges Initiative” to align with the Kingdom’s industrial transformation to speed up access to industrial inputs and enhance export competitiveness. The program is expected to expand opportunities for Saudi non-oil exports and introduce more flexible financing solutions. 

“Among the achievements made during this period is the bank’s obtaining its first credit rating from Fitch International with an A+ rating, which reflects the bank’s creditworthiness and commitment to the highest standards of efficiency and transparency,” said Al-Khalb.

Fitch Ratings assigns an A+ rating to entities with an exceptionally strong capacity to meet financial commitments and a low expectation of default risk. The agency cited the bank’s strategic importance as a government-owned entity and its central role in export financing, guarantees, and insurance. 

Saudi EXIM Bank, affiliated with the National Development Fund, is working to diversify the Kingdom’s economic base by enhancing the efficiency of the national non-oil export system, bridging financing gaps, and reducing export risks. 

On the sidelines of the African Development Bank Group’s annual meetings in Cote d’Ivoire in May, the bank signed four agreements to strengthen trade and investment ties across the continent. 

The deals were signed by Al-Khalb with Africa50, the Ghana Export-Import Bank, Blend International Ltd., and Guinea’s Ministry of Planning and International Cooperation, according to SPA.