Retail investors drive Middle East’s AUM growth to $1.2trln

According to a new analysis from Boston Consulting Group, retail investors have aided the expansion of the Middle East’s assets under management (AUM) business, which rose by double digits in 2021. (BCG).

Retail investors overtook institutions as a source of capital in the area last year, accounting for 9% of total AUM. During the same time frame, net flows from institutional investors fell by 3%.

“Retail investors have overtaken institutional AUM to become one of the most important investor segments,” BCG noted.

Last year, the region’s AUM increased by 16% to $1.2 trillion, much exceeding the 10-year average. During the same time span, global AUM increased by 12%, much exceeding the previous two decades’ average of 7% growth.

Middle Eastern exchanges have already performed well this year, indicating that individuals who invest in the region will do better than those who engage in global markets, according to BCG.