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GCC Institutional Investors - Pension Funds

  • Report

  • 21 Pages
  • January 2021
  • Region: Middle East
  • Marmore Mena Intelligence
  • ID: 5263853

The report explores various aspects of pension funds in GCC, a key institutional investor in the region, with significant asset base. The report sheds light on current state of pension funds in GCC in terms of assets under management, asset allocation, pension systems and key factors that influence pension funds such as demographics and government funding. The report also highlights challenges faced by pension funds in the region and presents policy recommendations to overcome them.
The report provides a complete view of GCC countries’ pension funds, covering present status and health of pension funds, factors that impact pension funds such as structure of pension systems, challenges and recommendations to leverage and facilitate growth of pension funds in GCC.

Key Discussion Points

  • Position of GCC Pension Funds in terms of asset under management, asset allocation etc.
  • Factors influencing management of pension funds such as structure of pension systems, demography etc.
  • Reforms undertaken towards strengthening of pension systems.
  • Challenges faced by the pension funds due to structural issues and current economic environment under the shadow of COVID-19 and low oil prices.
  • Recommendations to ensure sustained growth GCC pension funds and facilitate their increased participation in local capital markets.

Did you know?

  • Despite being relatively new, pension funds are a key institutional investor in the GCC region, with considerable asset base.
  • The region’s pension funds differ in terms of asset base, asset allocation and sustainability.
  • GCC’s pension systems are generous with income replacement ratios far higher than the global average even as pension funds face considerable actuarial shortfall.

Why purchase the report?

Holistic View Incorporating Recent Developments: Highlights key developments and their influence on pension funds.

Extensive Coverage: The report covers multiple aspects of pension funds in GCC, factors that impact pension funds such as structure of pension systems, challenges and recommendations to leverage and facilitate growth of pension funds in GCC.

Key Data Points: The report presents data on important parameters that shed light on pension funds status, sustainability and prospects such as,

  • Assets Under Management
  • Asset Allocation
  • Pension Indicators such as Income Replacement Rates
  • Actuarial Gap
  • Demographic Features

Table of Contents

1. Executive Summary 

2. Development and Role of Pension funds in the GCC region 

  • Pension Systems 
  • Population Characteristics 

3. GCC Pension Fund Landscape 

  • GCC Pension Fund 

4. Growth Drivers & Challenges 

  • Pension Fund Reforms 
  • Increasing Population and Early Retirement Age 
  • Large Mandate in terms of Income Replacement and Target Base 
  • Sustainability of the Funds 
  • Lack of Privatization 
  • Lack of Market Depth and Liquidity 
  • Inadequate Trading and Hedging Tools 

5. Policy Recommendation to tap GCC Pension Funds 

  • Improving Pension Systems 
  • Promote Corporate Governance Standards 
  • Enhance Market Liquidity 
  • Broaden Investment Offerings 
  • Build Market Infrastructure/Surveillance System 

6. APPENDIX (GCC Pension Fund Structure & Contributions)

List of Figures
Figure 2.1: Demographic Dividend - 2020 Estimates  
Figure 2.2: GCC life expectancy at 60 years has been slowly improving and reaching developed country levels
Figure 4.1: Oil Price Movements - 2014-2020 (USD/bbl)  

List of Tables
Table 1.1: Prominent Pension Funds in GCC
Table 2.1: GCC Pension Indicators
Table 2.2:  Pension Fund Assets Relative to GDP and Native Population
Table 3.1: GCC Pension Funds’ Assets (AuM)
Table 3.2: Asset Mix of GCC Pension Funds
Table 3.3: Kuwait’s Pension Fund Target Asset Allocation Mix
Table 5.1: Establishment of Corporate Governance Code
Table 6.1: Pension funds in the GCC region - Structures, Contributions and Computations



Countries Covered

  • Bahrain
  • Kuwait
  • Oman
  • Qatar
  • Saudi Arabia
  • UAE