How wealth managers can thrive in the GCC's rapidly evolving market

Understanding the GCC wealth management clientele

The GCC boasts a diverse and dynamic clientele of wealthy individuals, characterized by youth, diversity, and entrepreneurial spirit. This client base defies traditional segmentation, encompassing both ultra-high-net-worth (UHNW) individuals and a significant affluent segment, including a large expatriate community.

Key client segments

The GCC is not only home to some of the world’s wealthiest high-net-worth (HNW) individuals but also boasts a significant affluent segment. This region features a diverse client pool that defies simplistic segmentation, including ruling families, affluent youth, diverse expatriates, and business patriarchs. With a large expatriate community and a growing number of semi-permanent residents, understanding these nuances is crucial for navigating the GCC’s wealth management industry.

The population is notably young, yet it also attracts retirees from around the globe, creating a dynamic demographic landscape. In Saudi Arabia alone, approximately three million young affluent investors are emerging, eager for tailored wealth management solutions. However, many of these individuals face challenges in accessing the personalized services they need.

Local banks are beginning to recognize this gap and are automating their services to better cater to this demographic, presenting a unique opportunity to evolve traditional banking models. As the GCC continues to grow as a wealth management hub, understanding the diverse needs of its clients will be key to success in this rapidly changing market.

Expatriates constitute 40% to 50% of the GCC population, with figures as high as 80% in the UAE. This segment is not monolithic; it includes wealthy professionals and entrepreneurs from various backgrounds, each with distinct needs and priorities. Additionally, the region's baby boomers are the first generation to amass wealth through entrepreneurship and investment. An estimated half a million older individuals are expected to transfer approximately US$438b to their heirs by 2030, presenting a strategic opportunity for wealth managers to offer multi-generational planning advice.

Service expectations

Wealthy clients in the GCC have elevated expectations for innovation, cultural understanding, and digital engagement. They are more likely to switch to wealth management providers compared with clients in other regions, with 36% planning to change their primary provider in the next three years. Key expectations include the need for relationship managers to understand family dynamics and values, with 55% of clients emphasizing this importance. A strong brand reputation is crucial, with 57% of clients considering it a key factor in provider selection. Furthermore, a significant 71% of wealthy individuals expect wealth managers to leverage AI in service delivery, while 60% express concerns about data privacy.

As the wealth management landscape in the Gulf Cooperation Council (GCC) continues to evolve, firms are presented with significant opportunities for profitable growth. EY outlines strategic approaches that wealth managers can adopt to enhance their long-term performance in this dynamic region. To thrive in this unique environment, wealth managers must focus on four key concepts that can drive outperformance:

• Strategic leverage of alternative investments
• Multigenerational wealth advice approaches and solutions
• Advice-centered affluent banking
• Leveraging AI for HNW and UHNW segments

Strategic leverage of alternative investments

The democratization of alternative investments is transforming the wealth management sector. Innovations in technology and financial products are making these previously exclusive assets accessible to a broader range of investors. Over the next five years, alternative assets managed by wealth managers are expected to grow at twice the rate of traditional asset classes, with profits from alternatives projected to nearly triple by 2033. However, many wealth managers face challenges in delivering profitable growth and client satisfaction in this area. To capitalize on this opportunity, firms must develop a cohesive strategy that aligns alternative investment offerings with client needs, streamline operational processes, and enhance advisor education and productivity.

Advice-centered affluent banking

Affluent individuals in the GCC possess significant liquid assets but often find existing wealth advice models lacking. The affluent segment currently holds 35% of all GCC bankable assets and is poised for substantial growth. By redesigning affluent banking around an advice-led proposition, wealth managers can tap into this underserved market. However, challenges such as differentiation, the financial implications of shifting client assets, and the limitations of existing infrastructure must be addressed. A successful affluent banking model will focus on improving clients' financial health through goal-based planning, leveraging technology to enhance client experiences, and fostering trust through personalized interactions.

Multigenerational approaches to wealth management servicing

With wealth transfers accelerating, the need for multigenerational relationships is more critical than ever. Wealth managers must navigate the differing goals and values of donors and inheritors, particularly in the GCC, where recent wealth creation complicates traditional advisory models. Firms that successfully engage with both generations can capture a larger share of legacy wealth and attract new clients. This requires a deep understanding of family dynamics, tailored planning and advisory services, and product offerings that resonate with younger generations. By fostering trust and connection, wealth managers can retain inherited assets and enhance their overall value proposition.

Leveraging AI in the HNW+ segment

Artificial intelligence (AI) presents a transformative opportunity for wealth managers to enhance efficiency and deliver hyper-personalized services. As clients increasingly expect tailored experiences, firms must strategically invest in AI capabilities that drive value. This includes identifying high-priority use cases, improving data quality and architecture, and addressing regulatory challenges. By leveraging AI effectively, wealth managers can boost revenue through data-driven insights, increase productivity by automating routine tasks and enhance client satisfaction through personalized interactions.

These four strategic opportunities—leveraging alternative investments, redesigning affluent banking, adopting multi-generational approaches, and harnessing AI—represent pathways for wealth managers in the GCC to achieve sustainable growth. As the industry continues to innovate, those who embrace these concepts will be well-positioned to thrive in an increasingly competitive landscape. For a deeper dive into these insights and to explore how your firm can capitalize on these opportunities, access the full EY GCC Wealth Management Industry Report 2025.

In conclusion, the GCC wealth management market is ripe with opportunities for firms willing to innovate and adapt. By focusing on these four key areas, wealth managers can position themselves for sustainable growth and success in a rapidly evolving landscape. Embracing these strategies will not only enhance profitability but also foster deeper client relationships and drive long-term value in this dynamic region. Ultimately, sustainable growth in the GCC wealth management sector hinges on a client-led purpose. Despite the region's dynamism, the fundamental need for trusted advice remains constant. Firms that effectively articulate their purpose and tailor their business models will be best positioned to navigate the evolving landscape, achieve profitable growth, and secure long-term success.