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Wed 20 Sep 2017 01:28 PM

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GCC fund managers forecast to hold $110bn in assets by 2020

New DIFC report says assets under management in the Gulf is set to more than double

GCC fund managers forecast to hold $110bn in assets by 2020
Dubai International Finance Centre.

Total assets under management (AuM) in the Gulf region are forecast to rise to $110 billion in 2020, more than doubling in value.

According to a new report by Dubai International Financial Centre (DIFC) in partnership with Thomson Reuters, AuM in the GCC stood at $45.8 billion in 2016.

Fund managers in the UAE are expected to see their AuM grow from $1.6 billion in 2016 to $18.9 billion in 2020.

The report added that total AuM by fund managers in MEASA’s key financial centres - India, South Africa, Nigeria, Egypt and the GCC countries - was $436.5 billion.

By 2020, the report projects total AUM to reach $678.9 billion.

It said that Dubai will reinforce its status as the region’s leading financial hub with new legislation and regulation expected to attract inward investment.

Arif Amiri, CEO of DIFC Authority, said: “DIFC has identified the wealth and asset management industry as having huge potential for growth over the next five years, which is why we are making a number of enhancements to our platform.

"We believe Dubai and DIFC can play a central role in attracting assets to the region and preparing it for the future of the financial services industry.”  

The report said Islamic asset management continues to grow, at a moderate compound annual growth rate (CAGR) of 2.4 percent since 2012 to reach $58.89 billion in AuM at the end of 2016.

The report also highlighted the massive expansion of the middle class in emerging markets. This has created significant opportunities, with financial sectors that were previously focused on exporting capital now reinvesting that capital in those requiring finance at home.

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