GCC Mutual Fund Market Size
| 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 |
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.
GCC Mutual Fund Market Trends
Emerging Leadership of Saudi Arabia in GCC Capital Markets
In GCC, there are two active asset classes within the industry: Mutual Funds and Private Equity and other Alternative Assets. Mutual funds are, by and large, a function of the size and growth of the regional capital markets. GCC equity markets underperformed global peers during the previous year, reporting significantly lower gains during the year.
Saudi Tadawul has traditionally been the biggest market in the GCC region. This is not surprising considering the relative size of KSA's economy. Qatar and UAE are placed next in the order. The Capital Markets Authority (CMA) in Saudi Arabia is also actively improving the regulatory framework for listing and corporate governance to build more depth.
GCC Mutual Fund AuM By Fund Category
Asset gathering has been difficult in the region, as seen from the low size of mutual fund AuM compared to the GDP, in spite of the abundant private wealth and liquidity. Equity mutual funds, the primary vehicle for asset gathering, were hit hard by the global financial crisis of 2008, which led most investors to pull their money out, and the industry has not recovered since then. Equity Funds are predominant in this region. Bond Funds are a relatively new product, and since the GCC debt markets have only recently seen reforms, their size is also very small. Real estate funds, a popular choice of many GCC investors, have given negative returns since 2015 and so have been unable to increase their AUM.
GCC Mutual Fund Industry Overview
The GCC Mutual Fund Market report includes an overview of MF companies operating across the GCC. We wish to present a detailed profiling of a few major companies, which cover product offerings, regulations governing them, their headquarters, and financial performance. Currently, some of the major players dominating the market are Riyad Capital, NCB Capital, Samba Capital & Investment Management Company, HSBC Saudi Arabia Ltd, and ANB Invest.
GCC Mutual Fund Market Leaders
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Riyad Capital
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NCB Capital
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Samba Capital & Investment Management Company
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HSBC Saudi Arabia Ltd
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ANB Invest
*Disclaimer: Major Players sorted in no particular order
GCC Mutual Fund Market News
- May 2023: Saudi-based Riyad Capital has launched the Riyad Real Estate Development fund - Durrat Hitteen, in partnership with property developer Al Ramz Real Estate Company. The fund, with a value exceeding SAR0.5 billion (USD 133.3 million), aims to develop a mixed-use project in the Hitteen district in Riyadh with a total area of 27,119 square meters.
- January 2022: Saudi National Bank (SNB) announced the completion of the merger between NCB and Samba Financial Group, making it the largest and fastest merger in the history of the region. The merger included five key areas consisting of migrating personal and corporate customer accounts, migrating treasury, NCB Capital, and Samba Capital customers, in addition to migrating other administrative sectors and the merger of both banks' branches.
GCC Mutual Fund Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Prominence of Inslamic Funds in GCC Mutual Fund Industry
4.3 A Brief on Regulatory Environment
4.4 Insights on Various Types of Schemes or Funds Offered in Mutual Fund Industry
4.5 Technological Innovations Shaping The Industry
4.6 Market Drivers
4.6.1 Economic Growth
4.6.2 Rising Wealth and Income Levels
4.7 Market Restraints
4.7.1 Market Volatility
4.7.2 Limited Product Offerings
4.8 Porter's Five Forces Analysis
4.8.1 Bargaining Power of Buyers/Consumers
4.8.2 Bargaining Power of Suppliers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitute Products
4.8.5 Intensity of Competitive Rivalry
4.9 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Fund Type
5.1.1 Equity
5.1.2 Money market
5.1.3 Real Estate
5.1.4 Other Fund Types (Bond, Commodities, Mixed)
5.2 By Geography
5.2.1 Saudi Arabia
5.2.2 Qatar
5.2.3 Abu Dhabi
5.2.4 Kuwait
5.2.5 Dubai
6. COMPETITIVE LANDSCAPE
6.1 Market Competition Overview (Market Concentration And M&A Deals)
6.2 Company Profiles
6.2.1 Riyad Capital
6.2.2 NCB Capital
6.2.3 Samba Capital & investment Management
6.2.4 HSBC Saudi Arabia Ltd
6.2.5 ANB Invest
6.2.6 Saudi Hollandi Capital
6.2.7 Al Rajhi Capital
6.2.8 Jadwa Investment
6.2.9 Caaam Saudi Fransi
6.2.10 BNP Paribas Asset Management*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
GCC Mutual Fund Industry Segmentation
An understanding of the GCC mutual fund industry, regulatory environment, MF companies, and their business models, along with detailed market segmentation, product types, current market trends, changes in market dynamics, and growth opportunities. In-depth analysis of the market size and forecast for the various segments. The GCC Mutual Fund Industry is Segmented Based on the Fund Category (Equity, Money Market, Real Estate, and Other (Bonds, Commodities, Mixed)) and by Geography (Saudi Arabia, Qatar, Kuwait, Abu Dhabi, and Dubai). The report offers Market size and forecasts for the GCC Mutual Fund Market in value (USD) for all the above segments.
| By Fund Type | |
| Equity | |
| Money market | |
| Real Estate | |
| Other Fund Types (Bond, Commodities, Mixed) |
| By Geography | |
| Saudi Arabia | |
| Qatar | |
| Abu Dhabi | |
| Kuwait | |
| Dubai |
GCC Mutual Fund Market Research FAQs
What is the current GCC Mutual Fund Market size?
The GCC Mutual Fund Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)
Who are the key players in GCC Mutual Fund Market?
Riyad Capital, NCB Capital, Samba Capital & Investment Management Company, HSBC Saudi Arabia Ltd and ANB Invest are the major companies operating in the GCC Mutual Fund Market.
What years does this GCC Mutual Fund Market cover?
The report covers the GCC Mutual Fund Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the GCC Mutual Fund Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
GCC Mutual Fund Industry Report
The GCC Mutual Fund Industry is experiencing a notable growth rate, driven by various factors across the region. This industry analysis provides comprehensive industry information, highlighting the key trends and market dynamics. The industry outlook remains positive, supported by detailed industry reports and thorough industry research.
The report includes critical industry statistics, offering insights into the market data and market forecast. The market growth is evident, with leading market leaders setting the pace. The market outlook is promising, with a detailed market overview and market predictions that showcase potential opportunities and challenges.
The market review covers various aspects of the market segmentation and market value, providing a holistic view of the industry's performance. A report example and report pdf are available for further reference, offering a deep dive into the research conducted by leading research companies.
Overall, the industry profile and industry size are thoroughly examined, ensuring that stakeholders have access to relevant industry data. The market cap, market index, and sales data are also analyzed, providing a comprehensive view of the industry's current state and future prospects. This report serves as a valuable resource for understanding the GCC Mutual Fund market and its trajectory.
