Financial Advisory - GCC | Statista Market Forecast

Assets under Management in the Financial Advisory market are projected to reach US$478.30bn in 2024.
Assets under Management are expected to show an annual growth rate (CAGR 2024-2029) of 0.54%, resulting in a market volume of US$491.30bn by 2029.

Definition:

Financial advisory is the process of providing guidance and recommendations to clients regarding their financial decisions. Financial advisors use their expertise and knowledge to help clients make informed decisions about their investments, retirement planning, taxes, insurance, and other financial matters. The Financial Advisory segment encompasses the revenues generated by this service by both financial institutions and advisors, and includes the number of financial advisors, average revenue per advisor, and assets under management (AUM).

Traditional Wealth Management (non-automated wealth management services)
Traditional Investment, incl. Financial Advisors
Banks, Financial Institutions, and Financial Services Companies
B2C & B2B Revenues
Full-Service Products for Insurance, Investing, Lending, and Trading

Commercial Assets or Assets Under Custody
Digital Wealth Management (automated wealth management services)
Digital Investment, incl. Robo-advisors and Neobrokers
Independent Financial Advisory Companies
Independent Financial Advisors (IFAs)
Retail/Non-Professional Investors

The Financial Advisory market in GCC has been witnessing significant growth in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors have all contributed to the development of this market.

Customer preferences in the GCC region have shifted towards seeking professional financial advice. With the increase in disposable income and the desire to achieve financial goals, individuals and businesses are turning to financial advisors for guidance. The demand for personalized and tailored financial solutions has also grown, as customers seek advice on investment strategies, retirement planning, and wealth management.

The market trends in the GCC region reflect the global trend of digitalization and technology-driven solutions. Financial advisory firms are leveraging technology to provide online platforms and mobile applications, making it easier for customers to access financial advice and services. This has not only increased convenience for customers but has also enhanced the efficiency and effectiveness of financial advisory firms.

Local special circumstances in the GCC region have also contributed to the development of the Financial Advisory market. The region has a high concentration of high-net-worth individuals and family businesses, who require specialized financial advice and wealth management services. The presence of a large expatriate population in the GCC has also created a demand for cross-border financial advisory services, as individuals seek advice on tax planning, estate planning, and investment opportunities in their home countries.

Underlying macroeconomic factors have played a significant role in the development of the Financial Advisory market in the GCC. The region has experienced strong economic growth, driven by factors such as high oil prices, government investments, and diversification efforts. This has led to an increase in wealth creation and the need for professional financial advice.

Additionally, regulatory reforms and the introduction of pro-business policies have created a favorable environment for the growth of the financial advisory industry. In conclusion, the Financial Advisory market in the GCC has experienced significant growth due to customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The demand for professional financial advice, the adoption of technology-driven solutions, the presence of high-net-worth individuals and family businesses, and the favorable macroeconomic environment have all contributed to the development of this market.

As the GCC region continues to grow and diversify its economy, the Financial Advisory market is expected to further expand and evolve to meet the changing needs of customers.

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Private wealth management has developed significantly in recent years as a result of the growth of affluence worldwide. The number of millionaires in North America more than doubled between 2010 and 2022. A similar trend can be observed in the Asia-Pacific and Europe. The total wealth of the adult population in Europe has steadily increased since 2010. Private Wealth Management is an increasingly important service as the rate of wealth continues to increase among the general population and affluent high-net-worth-individuals. Coupled with the recent developments in the Fintech market, this has helped to open up new Private Wealth Management products and services to people with smaller amounts of disposable income and expanding services offered to larger clients.