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

Markus Massi
Updated 04 September 2016

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Asset managers' future prosperity and competitive advantage will require them to shift from outdated product strategies and develop disruptive investment capabilities using leading-edge data and analytics, the report emphasizes.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.”


Michelin-starred chefs delight Riyadh foodies

Guests at Taste of the World, Riyadh, a six-day extravaganza featuring some of the world’s best restaurants in the capital’s Digital City, sipped mocktails while listening to live acoustic music on the Music Stage.
Updated 17 November 2019

Michelin-starred chefs delight Riyadh foodies

Taste of the World, Riyadh has been heralded as a great success by both event organizers and the 14,000 visitors that attended the six-day extravaganza in the capital’s Digital City.
Commissioned by the General Entertainment Authority, this bespoke edition of the festival, created especially for the Riyadh Season, featured 14 of the world’s best restaurants, boasting a combined 13 Michelin stars.  
Throughout the festival, the participating restaurants featured an exclusive menu of three dishes, served in taster-size portions — two of each restaurant’s signature dishes, as well as a Saudi-inspired dish that the chef had exclusively designed for Taste of the World, Riyadh. Visitors looking for a more exclusive experience were welcomed to The Taste Residence where they were treated to a four-course dining experience with Michelin-starred chefs.
Another major attraction that drew large crowds was the Fire Pit, where local star chefs Areej Al-Shareef, Abdelelah bin Jarid and Fahad Bokhari showed off their talents alongside the global superstars. Hosted by Saudi culinary star and presenter Rakan Aloraifi, spectators enjoyed cooking demonstrations, tasting sessions and a live DJ.
In another area of the festival, guests sipped mocktails while listening to live acoustic music on the Music Stage.  
Award-winning chef Shane Osborn from Hong Kong’s Arcane said “Taste of the World, Riyadh has far exceeded my expectations. I have been fortunate to have experienced many similar events around the world but this one in Riyadh is both very unique and very different to anything that I have experienced before. It is the people of Riyadh who have really made it special and welcoming.”

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14,000 - of the capital’s cosmopolitan citizens visited the six-day culinary festival, featuring 14 of the world’s best restaurants and boasting a combined 13 Michelin stars.

Pascal Aussignac from London’s Michelin-starred Club Gascon said: “The smiles of the people whilst trying my food and their inquisitive questions about the meals prepared made it truly very special. I am
very happy to be here in Riyadh and to have taken part in this exciting event.”
Saudi chef Al-Shareef said: “I am very happy to be here and taking part in Taste of the World, Riyadh. I am also very proud in being the only female Saudi chef taking part and my experiences at the Fire Pit were very exciting and fun.”
Chef Aloraifi said, “This is the first time that Taste of the World has taken place in the Kingdom and people have been very excited about the occasion, the activities and the cooking demonstrations ... Hopefully next year we will be back again and will be able to add more local touches to the program.”
Based on the overwhelming enthusiasm and fast-selling ticket sales that has greeted the Taste of the World experience, organizers said they are looking forward to announcing a 2020 event soon.