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Biz Bahrain
08-07-2025
- Business
- 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
Arabian Business
07-07-2025
- Business
- Arabian Business
GCC wealth management transformed as investors embrace AI and demand transparent solutions with strong returns
The GCC's wealth management sector is undergoing a seismic shift, with clients demanding more personalised, AI-powered, and transparent financial services, according to the 2025 EY Global Wealth Research Report. The study reveals that 55 per cent of GCC investors have increased engagement with financial advisors amid market volatility—significantly above the global average. Clients now expect wealth managers to deliver a more holistic service, placing as much emphasis on financial wellbeing and product variety as on portfolio performance. GCC wealth management Multihoming is on the rise, with 36 per cent of GCC investors looking to increase their number of wealth management relationships. Almost half (50 per cent) are open to working with multiple providers—highlighting a growing trend toward diversification and lower brand loyalty. Simultaneously, 69 per cent of clients are allocating capital to alternative investments, pointing to a sophisticated appetite for diversification. Mayur Pau, EY MENA Financial Services Leader, said: '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.' The GCC leads globally in investor trust in artificial intelligence. While just 6 per cent of North American clients trust AI-powered advice, the figure rises to 13 per cent in the GCC. More than 70 per cent of regional investors expect financial managers to integrate AI into their services—especially younger and mass affluent clients. Despite this enthusiasm, clients remain cautious. Key concerns include data misuse and the reliability of AI-generated insights. Experts say the solution lies in education, transparency, and ethics-driven AI implementation. Hamdan Khan, Partner, EY MENA Wealth and Asset Management, said: '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.' Unlike global trends, 27 per cent of GCC clients are still comfortable with percentage-based fees on assets under management—compared to only 15 per cent globally. Subscription models and fixed fees are less favoured. However, confidence in fee transparency is rising, with over 90 per cent of clients believing they are being charged fairly. Still, performance speaks loudest. The top two reasons GCC investors switch providers are: Better investment performance and returns (55 per cent) Wider product and service offerings (53 per cent) Only 26 per cent said lower fees would prompt a provider switch, showing that value and results matter more than cost alone. The EY report concludes that successful firms must realign their models to match evolving expectations. That means investing in AI, expanding access to alternative investments, improving pricing structures, and focusing on comprehensive, client-first advice.
Zawya
07-07-2025
- Business
- Zawya
GCC wealth management landscape is shifting to address investor concerns around agility and technology
Trust in AI is on the rise with 71% of investors expecting wealth managers to incorporate AI into their product offerings Investors in the region are actively engaging with advisors and have higher expectations around investment performance and product access Dubai, UAE – 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 -Ends- About EY | Building a better working world EY is building a better working world by creating new value for clients, people, society and the planet, while building trust in capital markets. Enabled by data, AI and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow. EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fuelled by sector insights, a globally connected, multidisciplinary network and diverse ecosystem partners, EY teams can provide services in more than 150 countries and territories. All in to shape the future with confidence. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit The MENA practice of EY has been operating in the region since 1923. Over the past 100 years, we have grown to over 8,500 people united across 27 offices and 14 countries, sharing the same values and an unwavering commitment to quality. As an organization, we continue to develop outstanding leaders who deliver exceptional services to our clients and who contribute to our communities. We are proud of our accomplishments over the years, reaffirming our position as the largest and most established professional services organization in the region. © 2025 EYGM Limited. All Rights Reserved. ED None This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, legal or other professional advice. Please refer to your advisors for specific advice.
Al Etihad
19-03-2025
- Business
- Al Etihad
UAE banking sector poised for strong 2025: EY report
20 Mar 2025 00:19 KHALED AL KHAWALDEH (ABU DHABI) The UAE's banking sector is set for strong performance in 2025, backed by strong non-oil growth, stable oil prices, large infrastructure pipelines and broadly robust capital level across the region, according to recent reports from global consultancy EY. The EY GCC Banking Sector Outlook 2024 report forecasted a continuation of 2024 trends which saw "rising lending volumes, increased fee income, stable margins and effective cost management", across the GCC region. "As we go into the first quarter of 2025, the GCC banking industry should remain strong due to considerable capital cushions, healthy asset quality indicators and adequate profitability," Mayur Pau, EY MENA Financial Services Leader, said. "Resilient economies, the region's economic diversification efforts and enabling policies will support higher consumption and investment, further boosting the sector's performance."EY anticipates that the banks in the UAE will continue to grow their lending activities bolstered by "relaxed monetary policies and a favourable economic environment". The report also highlighted that deposit growth consistently exceeded lending at UAE banks, which, it said, was driven by strong performance in both corporate and retail segments and was indicative of a robust sector. EY also forecasts that banks would continue to increase their lending as interest rates come down in line with the US Federal Reserve's cuts. "The upcoming financial year looks to be a transformative period, with advancements in technology, shifts in consumer behaviour and regulatory changes shaping the future of banking," Pau added. Ultimately, the strong performance of the banks is underlaid by the robust growth in the overall economy. A recent report by the Institute of Chartered Accountants in England and Wales (ICAEW) predicted the Middle East's GDP to grow by 3.3% and be largely "out of the firing line" of trade disputes. ICAEW singled out the UAE's particularly strong trade, broadened by the extensive CEPA programme which is set to continue expanding in 2025. Moreover, it highlighted the healthy budget surplus in the UAE, which it said would allow the country to continue to make and fund large infrastructure projects. "The outlook for the non-oil sectors is for another year of strong expansion and we expect demand conditions in the region to remain supportive of activity. We see growth in Saudi Arabia and the UAE outperforming again, with expansion of 5.8% and 4.8%, respectively, thanks to a strong pipeline of infrastructure projects and private-sector development," the report said.
Zawya
19-03-2025
- Business
- Zawya
Qatar banks exhibit sufficient profitability, robust capital strength: EY
Qatar - Banks in Qatar exhibit sufficient profitability and robust capital strength, with both Tier 1 and capital adequacy ratio (CAR) surpassing the mandated regulatory thresholds, a report by EY has shown. Domestic funding avenues are predicted to adequately finance credit expansion in Qatar this year with the completion of major infrastructure projects and increased liquefied natural gas (LNG) production, 'EY GCC Banking Sector Outlook 2024 report' said. 'The expansion of gas production in Qatar will underpin the resilience of local banks this year,' it said. According to the report, GCC banks will continue to benefit from strong capital levels, supporting their overall performance in 2025. Credit growth in most GCC countries is broadly based on a strong project pipeline, with aggregate contract awards driven by infrastructure development, especially in Saudi Arabia and the UAE. The positive trajectory is expected to continue in the near future. This outlook is supported by rising lending volumes, increased fee income, stable margins and effective cost management. As the cost of lending turns more favorable, GCC countries might expand their investments globally. EY MENA Financial Services leader Mayur Pau noted, 'As we go into the first quarter of 2025, the GCC banking industry should remain strong due to considerable capital cushions, healthy asset quality indicators and adequate profitability. Furthermore, resilient economies, the region's economic diversification efforts and enabling policies will support higher consumption and investment, further boosting the sector's performance. 'The upcoming financial year looks to be a transformative period, with advancements in technology, shifts in consumer behavior and regulatory changes shaping the future of banking.' Non-oil growth remains a bright spot: GDP growth in the GCC is projected at 3.5% in 2025. Interest rate cuts, together with further investment and structural reform initiatives, will mean non-oil growth of over 3.4% in the region's two largest economies – Saudi Arabia and the UAE. As per the International Monetary Fund (IMF), the current account surplus is expected to be 8.2% of the GDP in 2025. On the fiscal front, a surplus of 3.9% of the GDP is forecast for 2025. Global oil demand is forecasted to increase by 1.6mn bpd to 104.5mn bpd in 2025, reflecting the end of the post-Covid-19 pandemic release of pent-up demand, challenging global economic conditions and clean energy technology deployment. Non-OPEC+ producers are likely to account for the bulk of the increase if OPEC+ voluntary cuts remain in place. High oil prices – with the average for 2024 estimated at $81 per barrel – and favorable economic growth have supported the GCC banks' healthy finances. GDP growth in the GCC is forecast to rebound to 3.5% in 2024, up from 1.4%, as oil production gradually increases, providing a boost to the region's economies, EY said. Hydrocarbon growth is likely to be 3.3%, while non-hydrocarbon sectors are forecast to grow at 3.4%, supported by strong domestic investment momentum. GCC banks have shown sustained growth in credit facilities during 2024, supported by economic transformation plans, robust project pipeline, healthy demand and resilient economic conditions. The banks are well-capitalised with strong asset quality indicator and are likely to uphold this strong performance trajectory throughout 2025. 'To fortify their profitability and improve cost optimisation in the current landscape, GCC banks should consider how to best to navigate a new normal that not only addresses regulatory fragmentation and national interests, but fully harnesses the power of technology and its multiple scopes such as digitisation, generative AI (GenAI), open banking and APIs, and the digital currency revolution – all while committing to a sustainable future. This will ensure they remain competitive and agile to better counteract the pressure of contracting margins,' Pau said. Ends
