State Street CEO Yie-Hsin Hung is doubling resources in the Middle East to capitalize on growth opportunities.

State Street Global Advisors, the fourth-largest asset manager in the world, is making significant moves to expand its presence in the Africa and Middle East region. The company’s president, Yie-Hsin Hung, announced plans to double its resources in the region, particularly in the UAE and Saudi Arabia, to capitalize on the growing opportunities in the area.

With a focus on diversifying its client base and managing the $100 billion in funds it already oversees for regional investors, State Street is positioning itself for further growth in the GCC. Ms. Hung expressed optimism about the region’s potential for growth, citing economic diversification programs as a key driver.

The company recently reopened its office in the Dubai International Financial Centre and plans to increase its headcount in the region to accelerate its expansion efforts. By the end of the year, State Street’s team of asset managers in Dubai and Riyadh will more than double to 30, with the overall headcount in the region reaching 68.

State Street sees opportunities in various areas such as exchange-traded funds, outsourced investments, portfolio management, and investment strategy in the region. With the presence of major sovereign wealth funds like the Abu Dhabi Investment Authority and the Public Investment Fund in Saudi Arabia, there is still untapped potential for growth for global asset managers like State Street.

The rapid development of the financial intermediary market, the rise of family offices, and the increasing number of affluent clients make the regional markets, especially Saudi Arabia and the UAE, attractive for asset managers. Dubai, in particular, stands out as a hub for wealth with a significant number of millionaires and billionaires calling the city home.

Ms. Hung also mentioned the potential for State Street to play a role in developing the capital markets in Saudi Arabia, in addition to managing existing assets. The company is keeping an open mind about setting up more offices in the broader region as its business continues to grow.

In terms of global investment themes, State Street remains overweight on equities, cash, and gold despite slowing economic growth. Ms. Hung shared insights on the US interest rate regime and the Federal Reserve’s potential rate cuts, highlighting the company’s strategic approach to investment in the current market environment.

Overall, State Street’s expansion in the Africa and Middle East region reflects its commitment to tapping into the region’s growing opportunities and diversifying its client base. With a focus on strategic growth and leveraging the talent and market opportunities in the region, the company is poised for continued success in the dynamic landscape of asset management.