Mena’s assets jump 11% in 2020
A report by the Boston Group Consulting Group (BCG) showed that assets under management in the region fell from $ 1.1 trillion to $ 1.2 trillion last year.
This increase has occurred despite the global pandemic. Global markets and oil prices both recovered from sharp declines in the first half of the year. And emerging market equities performed well, benefiting the large number of Mena-based wealth funds invested in the asset class.
Notably, some of the region’s largest wealth funds, such as the Saudi Public Investment Fund (PIF) and Abu Dhabi-based Mubadala, embarked on a spending spree in mid-2020, buying up assets. in troubled markets as well as in technology and healthcare. .
Mubadala’s assets under management increased by 5% in 2020, from Dh 853 billion ($ 232 billion) in 2019 to Dh 894 billion ($ 243 billion).
An additional factor, according to the report, was the strong demand for retail funds which increased by 12% in 2020.
“As in all industries, the resilience of the asset management industry was tested in 2020, with an initial disruption of the epidemic and subsequent economic tailwinds presenting a period of significant uncertainty for the industry. and its incumbent operators, ”said Harold Haddad, CEO and partner of BCG. .
“However, the Middle East has triumphed in the face of adversity, and it is now evident that the region has entered a position of strength in 2021 after healthy returns.”
The MENA region was broadly in line with global trends. Global assets under management grew 11% to $ 103 trillion by the end of 2020.
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