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Middle East And Africa ETF - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2020 - 2029

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  • 120 Pages
  • February 2024
  • Region: Africa, Middle East
  • Mordor Intelligence
  • ID: 5640905
The Middle East and Africa Exchange Traded Fund (ETF) market is expected to register at a CAGR of greater than 9% during the forecast period. Although the global ETF market has a history of almost 30 years, the ETF market in the Middle East and Africa is still underdeveloped. Globally there are more than 7,000 ETFs traded with more than USD 10 trillion of ETF assets, the number of ETFs based on the Middle East and Africa assets is abysmally low with only a handful of locally-listed ETFs, and trading volumes are low. The number of ETFs domiciled in the Middle East region is quite low. Saudi Arabia and Qatar have developed ETF market compared to other regions in the Middle East but even, the number of ETFs domiciled in both countries are in single digit

The ETF has proved to be most resilient during the most turbulent financial market due to the Covid-19 pandemic. During the period MEA region's ETF distribution was 72% in active ETF, 11%in passive ETF, and the remaining was under the smart beta category. The ETF model has proved to be an important instrument in the dynamic world of digital investing. Despite the pandemic, worldwide economic slow-down, and drastic lockdown measures the ETF market in the Middle East and Africa has shown a remarkable growth trajectory.

Over the years Middle East countries focused ETFs that are domiciled outside the region is continuously increasing reflecting the interest of foreign investors in the emerging market indices of the Middle East region, even though the number of ETFs based on GCC assets, including those domiciled in the USA are quite low.

Middle East And Africa ETF Market Trends

The number of ETF’s Domiciled in Middle East and Africa is Quite Low

The ETF market in the Middle East has not taken off owing to various reasons such as a lack of financial literacy and investor participation in the Capital Market. Similarly, long-term institutional investors like pension funds, university endowments, and sovereign wealth funds, do not have a targeted allocation to regional equity markets. In addition, there is a lack of regulations around authorized investment advisors, who advise clients on an optimal asset allocation to meet their investment needs. Last year the Middle East had ETF assets of USD 51 billion with 687 ETFs observing a significant increase over the previous years signaling a positive environment for the ETF market.

Increasing Assets of MENA ETF

With the economies reviving after the COVID-19 pandemic, and the roll-out of vaccines looking imminent, the ETF market in MENA is expected to bounce in coming years. There is the possibility of investors moving away from US investments and instead of looking to international markets, the Middle East is reasserting itself and opening up to foreign investment which will further increase the MENA ETF's domiciled in the region or outside.

Middle East and Africa are having a total of 14 ETFs traded in the US market available in the form of equity. I share MSCI Saudi Arabia ETF KSA is existing as the largest Middle East and Africa ETF observing a continuous increase in assets under management.

Middle East And Africa ETF Industry Overview

There are very few numbers of players offering ETFs in the Middle East and Africa Markets. Large number of Foreign players have also entered the market with ETFs focused in the MENA but domiciled in other regions such as America and Europe. Local Players include Al Biland, Alinma Investment, and Al Rayan Investment. Other Foreign Players include Blackrock, Invesco, Franklin Templeton, Xtrackers, etc

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.2.1 Decline in Cost of Service Providers
4.2.2 Availiblity of New distribution platform in the region
4.3 Market Restraints
4.3.1 Market Saturation (lack of Availiblity of new asset class)
4.3.2 Extreme market events increasing risk associate with ETF, dampening their demand.
4.4 Market Opportunities
4.4.1 Use of big data, digital technology by ETF firms for improving decision-making process.
4.4.2 Expanding global footprint and product of ETF Firms for competing outside home market.
4.5 Industry Attractiveness - Porters' Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
4.6 Insight on Various Government Regulations in the Market
4.7 Impact of COVID-19 on the Market
5.1 By ETF Type
5.1.1 Equity ETF
5.1.2 Fixed Income ETF
5.1.3 Commodity ETF
5.1.4 Real Estate ETF
5.1.5 Currency ETF
5.1.6 Other ETFs
5.2 By Management Type
5.2.1 Actively Managed ETF
5.2.2 Passively Managed ETF
5.3 By Country
5.3.1 Saudi Arabia
5.3.2 United Arab Emirates
5.3.3 Kuwait
5.3.4 Israel
5.3.5 South Africa
5.3.6 Rest of MENA
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Al Bilad Capital
6.2.2 Alinma Investment
6.2.3 Al Rayan Qatar
6.2.4 HSBC Saudi
6.2.5 Alkhabeer Capital
6.2.6 Blackrock
6.2.7 Invesco
6.2.8 Franklin Templeton
6.2.9 Xtracker
6.2.10 Chimera Capital LLC*

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Al Bilad Capital
  • Alinma Investment
  • Al Rayan Qatar
  • HSBC Saudi
  • Alkhabeer Capital
  • Blackrock
  • Invesco
  • Franklin Templeton
  • Xtracker
  • Chimera Capital LLC*