Middle East's AuM declines in 2015, says BCG study

Markus Massi
Updated 04 September 2016
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Middle East's AuM declines in 2015, says BCG study

The global growth of asset management stalled as the industry in 2015 recorded its worst year since the 2008 financial crisis, according to a report by the Boston Consulting Group (BCG).
Growth in assets under management (AuM) stalled — or in the case of the Middle East declined 10 percent — and net new flows of assets, revenue growth, and revenue margins all dipped lower in 2015, according to Global Asset Management 2016: Doubling Down on Data.
BCG’s fourteenth annual benchmark report on the industry has just been released.
Asset managers' future prosperity and competitive advantage will require them to shift from outdated product strategies and develop disruptive investment capabilities using leading-edge data and analytics, the report emphasizes.
BCG reports that the global value of AuM rose just one percent in 2015, to $71.4 trillion from $70.5 trillion in 2014, after growing eight percent that year, and at an average annualized rate of five percent from 2008 through 2014.
“Weak and turbulent global financial markets are today’s reality - one recent example being the market response to Britain’s Brexit vote to leave the EU,” said Ihab Khalil, a partner and MD at BCG Middle East.
The industry’s regional growth, as measured by AuM, reflected in large part the performance of capital markets by region in 2015.
AuM decreased in North America and the Middle East but rose elsewhere. Growth was modest in Europe and strong in Latin America and Asia, excluding Japan and Australia. The 10 percent growth of AuM in Asia, excluding Japan and Australia, was relatively robust, but once again, it trailed the rapid expansion of the region’s private wealth.
“The lack of market growth in 2015 reinforces the urgency faced by managers to pursue a step change in capabilities,” explained Markus Massi, partner and MD of BCG Middle East’s financial services practice and leader of the asset management topic.”


Events company sees KSA as market leader

Updated 20 May 2018
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Events company sees KSA as market leader

  • My Events International is based in Malaysia and operates on three continents worldwide.
  • ‘Saudi Arabia is being renewed,’ says My Events International founder.

JEDDAH: A global events company has begun operations in Saudi Arabia with a plan to make the Kingdom and Vision 2030 the focus of a growing world market in event management. 

My Events International provides event management, marketing, and sponsor and sales management in sectors including banking, technology, health care and construction.

The Malaysia-based firm operates in India, Kuwait, the UK, Singapore, Nigeria — and now Saudi Arabia. 

The company’s Jeddah opening was attended by Khaled Almaeena, Al-Abeer director; My Events International Saudi Arabia manager Shahul Dawood; founder and president of My Events International, Mohammed Abudawood; and Malaysia’s consul general in Jeddah, Dato Mohamad Ali bin Selamat.

The opening also included the launch of Expo Malaysia, which will showcase the country overseas.

“Our partnership with My Events International will help create a new trademark in Saudi Arabia that compatible with Vision 2030 and the new changes that is bringing,” Almaeena said.

“We are proud to announce that we are organizing the Malaysia Expo, which promotes trade and investment between the two countries and will provide job opportunities for Saudi youth,” he said.

Dawood said: “Saudi Arabia is our fifth country to have a partnership. We have entered Saudi Arabia at the best time — most of the doors are opened for us, and people are encouraging and supportive. 

“We are also aiming to do a special program for women. We are not only an event managing company, but also a specialist in content creation and public private partnership.”

Abudawood said: “We are witnessing a country that is being renewed. Youth represents 70 percent of the Saudi community, and they are full of energy and new ideas, so talking about events and entertainment will help make this change happen.”

Selamat said: “Malaysia and Saudi Arabia are two countries with great potential in sectors such as tourism, as well as developing small and medium enterprises.

“My Events International has great significance in events development, and this partnership will help strengthen ties between Saudi Arabia and Malaysia, and promote economic relations as well.”