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Asset managers' future prosperity and competitive advantage will require them to shift from outdated product strategies and develop disruptive investment capabilities using leading-edge data and analytics, the report emphasizes.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


Al-Dabbagh Group Ranked sixth on Kingdom of Saudi Arabia’s Great Place to Work List

Updated 04 June 2020

Al-Dabbagh Group Ranked sixth on Kingdom of Saudi Arabia’s Great Place to Work List

Jeddah, Saudi Arabia: Al-Dabbagh Holding Group, founded in 1962, has been ranked sixth in the Saudi Arabian private sector's best working environments for the year 2020. The ranking is compiled by Great Place to Work, a leading global organization that evaluates work environments across more than 60 countries.
This achievement comes in recognition of Al-Dabbagh Group's efforts toward creating and fostering a positive working environment for all. Employees participated in a questionnaire on work-place satisfaction, and the company policies were also subject to an external review, both of which contributed to the resulting ranking.
Al-Dabbagh Group’s Head of Human Resources, Hayfa Abu-Zabibah has said that "this achievement is the result of the Group's unique culture, derived from the philosophy of Omnipreneurship, which embraces comprehensive leadership and is made up of three principles (Giving, Earning and Sustaining) five values (integrity, passion, respect, forward-thinking, teamwork) and ten golden rules. The principles, values and golden rules provide the framework that govern the Group’s ecosystem and culture.”
Hayfa added that receiving this award will only increase the Group’s motivation to further promote this ecosystem and continue efforts toward becoming a better place to work.