Total Assets Managed in the Middle East Surpass $2.3 Trillion

Boston Consulting Group (BCG) recently released their 2024 Global Asset Management Annual Report, highlighting the Middle East’s significant contribution to economic growth through the asset management sector. The report shows that assets under management in the region increased from $2 trillion in 2022 to $2.3 trillion in 2023, reinforcing the sector’s crucial role in the global asset management landscape.

The report, titled “Artificial Intelligence and the Next Wave of Transformation,” analyzes how artificial intelligence is reshaping the asset management sector worldwide. It surveyed asset managers overseeing assets exceeding $15 trillion, revealing a consensus among industry leaders on the importance of transitioning towards AI-based asset management strategies.

Lucas Rhee, Managing Director and Head of the Financial Institutions Practice Team in the Middle East at BCG, emphasized the necessity for asset managers to adopt AI technologies to stay competitive amidst increasing structural challenges. By investing in AI to enhance productivity, offer tailored products, and explore private markets, asset managers can pivot from traditional slow growth to innovative, scalable solutions.

The report identifies three key elements – improving productivity, providing tailored products, and focusing on specialized markets – as crucial for success in the coming years. AI and GenAI (Generative Artificial Intelligence) play vital roles in streamlining operational processes, crafting personalized products, enhancing customer experiences, and adapting to evolving market pressures.

Integrating AI into asset management processes can enhance efficiency and unlock new opportunities. While the Middle East strives to solidify its leadership in the AI readiness landscape, further efforts are needed to harness the positive impacts of early AI adoption and innovation. By integrating AI technologies within economic frameworks, the region can experience significant workflow transformations and strengthen the connection between AI solutions and human creativity.

Asset management firms in the Middle East that effectively incorporate AI technologies can boost efficiency, deliver personalized customer experiences, and capitalize on emerging prospects. By doing so, these companies can maintain competitiveness and bolster the region’s reputation as a hub for AI innovation and utilization.