UAE leads asset and wealth management sector in the Middle East

The UAE is a regional leader in attracting asset management companies and experts, supported by its international standard legislative and regulatory architecture and the availability of financial centers that provide an ideal incubator environment for these companies, which are in growing demand for their services in the country, according to the International Strategic Analysis Center in Abu Dhabi.

The International Centre for Strategic Analysis revealed in a new report that Abu Dhabi and Dubai have established their place among the world’s leading cities in attracting companies operating in the asset and wealth management sector, while enhancing the attractive business environment in the country in general and providing access to Gulf and region markets in general in the sector.

The UAE has successfully promulgated strong legislation and regulatory frameworks that have made it a vital environment for the asset management sector, with Abu Dhabi World Market and Dubai World Financial Centre playing a key role in this context.

According to Abu Dhabi Global Market, the volume of managed assets grew by 56% in 2022, while the number of asset management companies that moved to the market increased markedly, making it one of the fastest-leading and fastest-growing international financial centers in the region.

The Dubai International Financial Centre (DIFC) has recently attracted more than 300 wealth and asset management companies, establishing its position as the largest financial center in the Middle East, Africa, and South Asia region while exceeding the $450 billion in wealth managed across the Centre.

The International Centre for Strategic Analysis in Abu Dhabi explained that asset and wealth management have emerged globally in conjunction with the global financial crisis of 2008, where they are needed to invest funds on behalf of investors from various sources, including opportunities to invest in government finance through sovereign wealth funds, pension schemes, and insurance companies, and private sector financing through the purchase of shares or bonds, in order to avoid the risk of investing in a particular investment activity.

“In a short period of time, asset management had significantly dominated the global financial sector, with asset managers now becoming one of the most powerful institutions transforming the global economy into new investment opportunities,” the International Centre for Strategic Analysis added.