Insight Discovery, a financial services consulting organization, released the 13th edition of the Middle East Investment Panorama (MEIP) report. It states that as of 2023, there were 240 wealth management companies regulated in the GCC, a 22% increase.

The number of regulated wealth management organizations increased significantly, rising by 37%, especially in the UAE.

This increase highlights the industry's general confidence, which is supported by a favorable regulatory framework and a clientele that is becoming more informed. The research also emphasizes how crucial it is to draw in and keep qualified employees who work directly with clients in the face of increasing competition.

"These hard numbers fully justify the optimism that pervades the wealth management industry in this part of the world," said Nigel Sillitoe, CEO of Insight Discovery. The major firms know exactly what they must do to be competitive in a market where customers are growing more informed.

These organizations understand the significance of hiring, training, and retaining qualified employees who work directly with clients. Additionally, the regulatory landscape is favorable. It is also gratifying to see the number of wealth management firms increasing. This implies that investors have a lot more options throughout the GCC region.

Additional discoveries

Due to the notable shifts that have occurred since the start of 2023, Insight Discovery decided to postpone the release of the MEIP report in order to include information from the most recent Middle East Wealth Change (MEWX) conference in Dubai.

Highlights on family offices and wealth management in the GCC are included in the research, along with expert commentary on investing in alternative assets and the most recent modifications to end-of-service benefit (EoSB) payment legislation in the UAE.

Furthermore, a favorable outlook was found among respondents to Insight Discovery's regular poll of investment advisers, which is an important part of the MEIP study. 53% of respondents to a study conducted in the first half of 2023 said that their businesses had grown over the previous 12 months, and 73% said they planned to continue expanding into early 2024.

Notably, due to factors including easier access for retail investors and increased institutional interest in private equity (PE) and venture capital (VC) opportunities in the GCC countries, advisers are favoring alternative asset classes more and more.

According to Sillitoe, "the broadly defined wealth management sector of the GCC region can look forward to a great year in 2024–25 and beyond, after years of false starts, excessive hype, and promises of 'jam tomorrow if not today'."

Numerous factors, such as shifting demographics, sluggish asset markets, ruthless competition, the allure of competing centers, and unfavorable governmental acts, can impede the expansion of wealth management. The fact that none of these issues are apparent in Dubai, Abu Dhabi, or other regional hubs is what matters most. The GCC countries' wealth management industry will eventually mature, but it most certainly won't do so in the next 12 to 18 months.