Asset managers gain ground in the GCC

Explore the GCC’s role in global capital markets and how asset managers are capitalising on the region’s capital raising opportunities.

2 July 2026

5 mins

Corporate & investment bankingFinancial institutions and investor groupsFinancing, Securities Services & Custody

The GCC’s role in global capital markets is entering a new phase.

That shift is visible not only in the scale of capital originating from the region, but in the way its investment architecture is developing. Long recognised for the depth of its sovereign capital, the GCC is now building a broader and more institutionalised fundraising environment. Pension structures are evolving, Islamic finance continues to deepen, and private wealth is becoming increasingly international in outlook. These dynamics are unfolding in parallel, reinforcing one another and strengthening the region’s capital base.

For global asset managers, the opportunity is no longer defined solely by access to liquidity. It is defined by participation in a capital ecosystem that is becoming more diversified, more structured and more globally integrated.

GCC: Grabbing the attention of Asset Managers

Despite the volatility gripping global markets, the GCC has proven to be remarkably resilient.

More importantly, the region is evolving into one of the world’s most significant pools of investable capital. The combination of large sovereign wealth funds, expanding institutional investors and rapidly growing private wealth is reshaping the region’s role in global markets. What was once viewed primarily as a source of capital is increasingly becoming a strategic market for asset managers seeking long-term growth.

Today, the region’s investor base is both deep and diverse, with many allocators keen to reduce their historic dependencies on the commodity-centric domestic markets – in favour of building up exposures to global asset managers.  

As regional portfolios regionalise, global asset managers are responding in kind – expanding their presence to align with this outward looking capital base and complement existing capital pools in North America, Europe and Asia.

This growing alignment of capital and strategy is reshaping fundraising dynamics, with the composition of the region’s capital base increasingly defining its long-term relevance in global allocation decisions.

The capital drivers

Sovereign wealth funds

Sovereign wealth funds (SWFs) remain the most visible foundation of institutional capital in the region. Collectively accounting for approximately 40 per cent of global assets, GCC sovereign investors represent one of the largest capital pools worldwide. Deloitte estimates that these funds manage around USD12 trillion in assets, with projections rising toward USD18 trillion by 2030.

Their significance, however, extends beyond scale. Deployment levels illustrate sustained engagement, with USD82 billion invested in 2023, and a further USD55 billion allocated in the first nine months of 2024. Capital continues to be directed toward sectors aligned with long-term economic transformation, from artificial intelligence to advanced infrastructure, reinforcing the strategic orientation of these investors.

For asset managers, engagement in this environment increasingly centres on long-term alignment. Relationships are built on continuity and credibility, reflecting the strategic priorities that shape sovereign allocation decisions.

Many leading global asset managers recognise the region as offering among the most attractive rates of growth in the world – namely the opportunity of supporting the greatest concentration of Sovereign Wealth.

Jean-Marc Laventure

Head of Investor Sales, Middle East, FSS, Standard Chartered

Pension reform and institutionalisation

While sovereign wealth anchors the ecosystem, pension reform is gradually broadening its institutional foundations.

Several markets, including the UAE, Oman and Qatar are transitioning from the traditional End of Service Gratuity (ESOG) set-up toward Defined Contribution (DC) frameworks.

This shift moves retirement savings into professionally managed, long-duration investment structures, therefore strengthening domestic capital formation and reinforcing the region’s institutional infrastructure.

As these systems mature, they are likely to expand demand for diversified global strategies. Over time, this institutionalisation deepens the capital pool beyond sovereign wealth alone, adding stability and continuity to the fundraising landscape.

Islamic finance

Parallel to pension reform, Islamic finance continues to expand the breadth of the region’s capital base. Global Islamic finance assets reached USD5.4 trillion in 2024, with 50 per cent concentrated in the GCC, and are projected to hit USD9.75 trillion by 2029 – a compound annual growth rate (CAGR) of 10 per cent.

This expansion is accompanied by increasing product sophistication and broader distribution capabilities. As Islamic financial institutions enhance their wealth and asset management platforms, they are integrating internationally diversified strategies within Shariah-compliant frameworks, strengthening cross-border investment linkages while remaining aligned with regional preferences.

Distribution channels have expanded beyond foreign banks to include local and Islamic financial institutions, which are increasingly recognising the strategic importance of wealth management in serving their client base.

Amar Metha

Head of Retail, Gulf, Eastern Mediterranean & Africa, Franklin Templeton

Private wealth

Beyond institutional capital, private wealth across the GCC continues to expand in both scale and sophistication.

High and Ultra High-net-worth individuals, private banks, wealth managers and the mass affluent segment are progressively seeking broader global diversification. While domestic providers have historically supported local investment needs, client mandates are becoming more internationally oriented, reflecting greater familiarity with global asset classes and cross-border opportunities.

This evolution adds depth to the region’s fundraising landscape. Sovereign wealth may anchor the capital base, and pension reform may institutionalise long-term savings, but expanding private wealth introduces continuity and distribution breadth.

Together, these layers reinforce the GCC’s position as a capital ecosystem rather than a single-source funding market.

Looking ahead

The GCC’s growing importance in global fundraising reflects a convergence of structural forces rather than a single source of liquidity. As institutional capital pools continue to scale and private wealth expands, the GCC is no long a peripheral allocation story – it is fast becoming a core component of the global capital landscape.

This is the first in a series of articles exploring the evolving GCC funds landscape.