logo
GCC wealth management landscape is shifting to address investor concerns around agility and technology

GCC wealth management landscape is shifting to address investor concerns around agility and technology

Biz Bahrain08-07-2025
According to the 2025 EY Global Wealth Research Report, the GCC wealth management landscape is undergoing a profound transformation, shaped by shifting client expectations and technological disruption. Investor behavior in the region reflects greater engagement with advisors, increased openness to switching providers, and heightened expectations around investment performance and product access.
Nearly 55% of GCC clients reported arranging more advisor meetings in response to market volatility, well above the global average. The importance of understanding how financial activities impact the client's financial health is nearly as important as portfolio allocation, indicating that investors now expect advisors to deliver holistic wealth management.
At the same time, multihoming is rising rapidly, with 36% of investors in the region expecting to increase their number of wealth management relationships, and nearly 50% expressing interest in working with more providers, pointing to a growing fragmentation of trust and loyalty. In parallel, clients are showing a strong preference for alternative investments, with 69% already allocating assets to these vehicles.
Mayur Pau, EY MENA Financial Services Leader, says:
'The EY Global Wealth Research Report shows that longstanding assumptions in wealth management are being disrupted by accelerating economic shifts and rapid technological change. This is heightening the urgency for wealth managers to offer more clarity, agility, and proactive guidance in an environment defined by uncertainty. Clients also expect greater depth and breadth of the product shelf than ever. Wealth management firms must be prepared to understand the drivers of satisfaction and ensure they are optimized independently of prevailing market conditions.'
GCC investors feel satisfied with the services provided by their primary wealth manager across all key dimensions, but they still see the task of managing their wealth becoming more intricate. Only 57% of the region's respondents have reached the 'high bar' of being well-prepared to meet their financial goals, which must be the target for all advised clients.
Rising expectations for AI integration
In the GCC, 13% of clients express a high level of trust in artificial intelligence (AI), showcasing their openness to AI-powered solutions. This figure is notably higher than in more mature markets, like North America (6%) and Europe (9%), and it is also competitive with Latin America (16%) and Asia Pacific (15%). Wealth managers in the region must leverage this trust to meet the evolving expectations of their tech-savvy client base.
The GCC is among the most enthusiastic regions globally when it comes to AI, with 71% of investors expecting wealth managers to incorporate AI into their product offerings. This number is even higher among mass affluents. On the other hand, clients are increasingly aware of the potential risks associated with AI, including data misuse and the accuracy of AI-driven insights.
To build trust, wealth managers must actively educate clients about AI's capabilities and the safeguards in place to protect their information. This includes communicating the ethical principles guiding AI use, ensuring compliance with regulations and demonstrating how AI can enhance – rather than replace – the human element of wealth management.
Clients seek less common fee arrangements
GCC investors are more cautious and proactive, emphasizing transparency, cost clarity and tailored offerings. While percentage-based fees on assets under management (AUM) are unpopular globally (15%), they remain relatively more accepted in the GCC (27%), with performance-based fees, fixed fees, subscription fees and combinations of fee structures losing popularity. These findings show that industry pricing mechanisms are out of step with client preferences, revealing an underlying opportunity for pricing optimization.
Concerns around hidden costs have decreased in the last few years, with firms making progress in improving fee transparency. Over 90% of clients in the region strongly believe they are being charged fairly for services rendered.
GCC clients cite better investment performance and returns (55%) and access to a wider array of investment products and services (53%) as their top two drivers to switch wealth management providers. Only 26% would opt for a different provider due to seeking lower fees for services.
Hamdan Khan, Partner, EY MENA Wealth and Asset Management, says:
'With investors increasingly expecting AI-powered solutions and holistic wealth management approaches, firms must act swiftly to align their strategies with these evolving demands. By investing in AI technologies, enhancing client engagement and prioritizing ethical data practices, wealth managers can position themselves for success in a rapidly changing landscape. The future of wealth management is not just about managing assets; it's about building relationships, fostering trust and leveraging technology to create exceptional client experiences.'
The biennial EY Global Wealth Research Report aims to help wealth managers align strategic priorities with deep, data-driven insights into client behavior, preferences and expectations. It also identifies clear trends in managing provider relationships, reallocating capital, and planning for intergenerational wealth transfer. For more information on the report and its findings, please visit: https://www.ey.com/en_gl/wealth- management-research
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

GCC wealth management landscape is shifting to address investor concerns around agility and technology
GCC wealth management landscape is shifting to address investor concerns around agility and technology

Biz Bahrain

time08-07-2025

  • Biz Bahrain

GCC wealth management landscape is shifting to address investor concerns around agility and technology

According to the 2025 EY Global Wealth Research Report, the GCC wealth management landscape is undergoing a profound transformation, shaped by shifting client expectations and technological disruption. Investor behavior in the region reflects greater engagement with advisors, increased openness to switching providers, and heightened expectations around investment performance and product access. Nearly 55% of GCC clients reported arranging more advisor meetings in response to market volatility, well above the global average. The importance of understanding how financial activities impact the client's financial health is nearly as important as portfolio allocation, indicating that investors now expect advisors to deliver holistic wealth management. At the same time, multihoming is rising rapidly, with 36% of investors in the region expecting to increase their number of wealth management relationships, and nearly 50% expressing interest in working with more providers, pointing to a growing fragmentation of trust and loyalty. In parallel, clients are showing a strong preference for alternative investments, with 69% already allocating assets to these vehicles. Mayur Pau, EY MENA Financial Services Leader, says: 'The EY Global Wealth Research Report shows that longstanding assumptions in wealth management are being disrupted by accelerating economic shifts and rapid technological change. This is heightening the urgency for wealth managers to offer more clarity, agility, and proactive guidance in an environment defined by uncertainty. Clients also expect greater depth and breadth of the product shelf than ever. Wealth management firms must be prepared to understand the drivers of satisfaction and ensure they are optimized independently of prevailing market conditions.' GCC investors feel satisfied with the services provided by their primary wealth manager across all key dimensions, but they still see the task of managing their wealth becoming more intricate. Only 57% of the region's respondents have reached the 'high bar' of being well-prepared to meet their financial goals, which must be the target for all advised clients. Rising expectations for AI integration In the GCC, 13% of clients express a high level of trust in artificial intelligence (AI), showcasing their openness to AI-powered solutions. This figure is notably higher than in more mature markets, like North America (6%) and Europe (9%), and it is also competitive with Latin America (16%) and Asia Pacific (15%). Wealth managers in the region must leverage this trust to meet the evolving expectations of their tech-savvy client base. The GCC is among the most enthusiastic regions globally when it comes to AI, with 71% of investors expecting wealth managers to incorporate AI into their product offerings. This number is even higher among mass affluents. On the other hand, clients are increasingly aware of the potential risks associated with AI, including data misuse and the accuracy of AI-driven insights. To build trust, wealth managers must actively educate clients about AI's capabilities and the safeguards in place to protect their information. This includes communicating the ethical principles guiding AI use, ensuring compliance with regulations and demonstrating how AI can enhance – rather than replace – the human element of wealth management. Clients seek less common fee arrangements GCC investors are more cautious and proactive, emphasizing transparency, cost clarity and tailored offerings. While percentage-based fees on assets under management (AUM) are unpopular globally (15%), they remain relatively more accepted in the GCC (27%), with performance-based fees, fixed fees, subscription fees and combinations of fee structures losing popularity. These findings show that industry pricing mechanisms are out of step with client preferences, revealing an underlying opportunity for pricing optimization. Concerns around hidden costs have decreased in the last few years, with firms making progress in improving fee transparency. Over 90% of clients in the region strongly believe they are being charged fairly for services rendered. GCC clients cite better investment performance and returns (55%) and access to a wider array of investment products and services (53%) as their top two drivers to switch wealth management providers. Only 26% would opt for a different provider due to seeking lower fees for services. Hamdan Khan, Partner, EY MENA Wealth and Asset Management, says: 'With investors increasingly expecting AI-powered solutions and holistic wealth management approaches, firms must act swiftly to align their strategies with these evolving demands. By investing in AI technologies, enhancing client engagement and prioritizing ethical data practices, wealth managers can position themselves for success in a rapidly changing landscape. The future of wealth management is not just about managing assets; it's about building relationships, fostering trust and leveraging technology to create exceptional client experiences.' The biennial EY Global Wealth Research Report aims to help wealth managers align strategic priorities with deep, data-driven insights into client behavior, preferences and expectations. It also identifies clear trends in managing provider relationships, reallocating capital, and planning for intergenerational wealth transfer. For more information on the report and its findings, please visit: management-research

EY launches new academy in KSA to meet workforce needs
EY launches new academy in KSA to meet workforce needs

Trade Arabia

time18-12-2024

  • Trade Arabia

EY launches new academy in KSA to meet workforce needs

EY has announced the launch of its new academy in the Kingdom of Saudi Arabia (KSA) that will offer world-class, digitally enabled talent development products and programmes across multiple industries and sectors. The organization is the first of its peers to gain a license to operate an academy in KSA. Abdulaziz Al-Sowailim, EY Mena Chairman and CEO, said: "We are pleased to expand the EY Academy capabilities into the Mena region. We chose to first launch this in KSA to further support the nation's Vision 2030 goals of developing a more agile and innovative business landscape." "At EY, we believe a human-centric approach is key to building a future-ready workforce and we look forward to adding value to both the public and private sector with our expertise and world-class research," he noted In KSA, the academy will feature in Riyadh, Jeddah, and Al Khobar, offering a range of bespoke programs for public and private sector entities aiming to upskill and reskill their workforces. Programs will focus on areas essential to sectors pivotal to economic progress such as finance and accounting, leadership and management, data and Artificial Intelligence (AI), and sustainability and innovation, it added. According to EY, the courses are designed to build capacity and confidence to shape the future across technical expertise, leadership excellence and leading innovation and change. Their digitally enabled offering strives to accelerate the adoption of critical skills and knowledge with practical and authentic work-based learning programs for employees at all levels. Khurram Mian, the EY MENA Assurance Leader, said: "We are proud to launch our academy for the benefit of industries in our region. Forecasts indicate that millions of jobs in the Mena region will require new skills and to support an increase in productivity, making our launch both timely and relevant." "Our vision is to champion the delivery of value-driven learning and development opportunities in order to drive progress across multiple industries and sectors, support the nation's economic transformation, and contribute to a sustainable future," satted Mian. Fazeela Gopalani, EY Mena Academy Leader, said: "Our decision to pursue an academy license in KSA was driven by our commitment to supporting the country's ambitious Vision 2030, with an emphasis on education and workforce development." "EY often highlights the importance of education and training in driving economic growth, productivity, and competitiveness in the global market. Our regional and global wealth of expertise and knowledge can contribute significantly to fast-tracking the availability of skilled workers, and we are committed to offering our support to help realize this transformative vision," she stated.

2024 Fintech Future Forum Concludes with Resounding Success in Bahrain
2024 Fintech Future Forum Concludes with Resounding Success in Bahrain

Daily Tribune

time03-10-2024

  • Daily Tribune

2024 Fintech Future Forum Concludes with Resounding Success in Bahrain

TDT | Manama The 2024 Fintech Future Forum has wrapped up successfully, marking its second consecutive year at the Bahrain International Exhibition and Convention Centre. This year's event saw an impressive turnout of 1,700 attendees over two days, with approximately one-third hailing from across the Gulf region and other parts of the world. Organized by the Economic Development Board (EDB) in partnership with Economist Impact, and supported by the Central Bank of Bahrain, Tamkeen, and Bahrain Fintech Bay, the forum delivered fresh perspectives on fintech and facilitated high-level networking among key regional and international business executives. The event highlighted emerging trends in technology and explored their influence on the global financial landscape. Key Discussions and Insights The forum opened with remarks from His Excellency Shaikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy, who provided strategic insights into the impact of global macroeconomic trends on the rapidly growing fintech sector. He underscored the importance of adapting to new economic realities as fintech continues to reshape global finance. A panel discussion followed, featuring distinguished leaders including HE Shaikh Salman bin Khalifa Al Khalifa, HE Noor bint Ali Al Khulaif, Bahrain's Minister of Sustainable Development, and Binance CEO Richard Tang. They discussed how countries and corporations are fostering the next generation of tech talent amid fierce competition and a constantly evolving global environment. Industry Leaders and Thought Leadership As part of the event's Transformation Agenda series, the forum brought together changemakers and industry thought leaders from around the world. Notable participants included Amy Oldenburg from Morgan Stanley Investment Management, Rishabh Bhandari of Wells Fargo, Columbia University Professor Jeffrey Sachs, Godfrey Sullivan of Visa CEMEA, Alex Lolla of ATME, EY MENA's Brian Stirewalt, Yousif Almas from Bank ABC, and Alaa Saeed from ARRAY Innovation. These sessions served as a platform for leaders to exchange insights on fintech developments, from macroeconomic trends to innovations in open banking and cryptocurrencies, highlighting Bahrain's growing role as a regional fintech leader. Strategic Partnerships and Milestones The forum also witnessed the signing of several key memorandums of understanding (MoUs). Among them was an MoU between and Benefit, and another between SC Ventures, a subsidiary of Standard Chartered, and Bahrain Fintech Bay, aimed at expanding projects in Bahrain's fintech ecosystem. A significant announcement came from NBB (National Bank of Bahrain), which revealed a partnership with ARP Digital to launch the first Bitcoin-linked investment fund in the GCC. Additionally, Bahrain Fintech Bay launched its 2024 Bahrain Fintech Ecosystem Report during the event. Prominent Moderators The discussions were guided by top moderators, including Joshua Roberts, Capital Markets Editor at The Economist; Jean Piotrowski, Schumpeter Columnist at The Economist; and Lavina Ayre, Global Technology and Telecommunications Analyst at the Economist Intelligence Unit. Bahrain's Rise as a Fintech Hub Bahrain's success in fintech and emerging technologies continues to attract global attention. The kingdom is establishing itself as a regional hub for fintech, open banking, and cryptocurrencies, while also advancing in artificial intelligence. This growth can be attributed to Bahrain's forward-thinking regulatory framework and a highly skilled, bilingual workforce, which has made the country an attractive destination for international investors. By positioning itself at the forefront of fintech innovation, Bahrain is cementing its reputation as a leader in shaping the future of financial services in the region.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store