Our Global Head of Sales & Relationship Management for Digital Products, Paul Elflain, was recently invited to speak on the Future Outlook for Asset Management and ETFs panel at the 6th Annual ETFGI Global ETFs Insights Summit in Abu Dhabi – an event that underscored how rapidly the Middle East, and especially the Gulf Cooperation Council (GCC), is becoming a focal point for ETF innovation and digital investing.
The region’s deep pools of capital, supportive regulators and fast-growing investor base are combining to create one of the most dynamic ETF environments anywhere. What was once a niche discussion has become a major talking point for global asset managers, issuers and infrastructure providers looking to engage with a market that is moving quickly from potential to reality.
A Market on the Move
Moderated by Deborah Fuhr, Founder of ETFGI, the panel brought together leaders shaping this evolution – Sherif Salem of Lunate, Anthony Sassine of OCEANE Invest, William Tohme of MFS Investment Management, and Paul representing our perspective on digital distribution.
Across the discussion, a clear sense of momentum came through. Sassine described a market that already understands ETFs but is still building the local foundations needed for scale. “The demand is here,” he said. “Investors already understand ETFs. Now we need to make it easier to invest locally.”
That progress is visible. Lunate’s growing range of core, fixed-income and thematic ETFs, and policy innovations such as the UAE’s new end-of-service benefits system, which allows employers to invest employee contributions in managed funds, are laying the groundwork for mass participation. Much like the 401(k) system in the US, this reform could introduce millions of new savers to ETFs for the first time.
The sense of optimism was unmistakable: the GCC’s ETF market may be young, but its foundations are solid and expanding fast.
Global Expertise Meets Local Ambition
That growth is being fuelled by global expertise meeting local ambition. For MFS Investment Management, one of the world’s oldest active managers, ETFs are not a disruption but a natural evolution.
“Clients want the best of both worlds,” said Tohme. “They value active management, but they also want transparency and cost efficiency. ETFs allow us to combine those attributes.”
His point resonated across the panel. As family offices, sovereign wealth funds and pension schemes in the region mature, they are demanding more flexible and efficient investment structures. The convergence of active and passive, institutional and retail, is creating fertile ground for innovation.
The Digital Transformation of Asset Management
Paul brought a global view to the conversation, focusing on how digital technology and particularly tokenisation could transform the asset-management lifecycle.
“Tokenisation is an enabler,” he explained. “It allows the creation, administration and distribution of investment products in a more efficient, transparent way. Over time, that could mean a fully digital investment process from end to end.”
For us, this is not just theory. We see a powerful opportunity to use our network and technology to connect traditional fund infrastructure with emerging digital platforms. That bridge between traditional finance (tradfi) and decentralised finance (DeFi) could make it easier for asset managers to reach new audiences and for investors to access a broader universe of products.
Paul emphasised that the real opportunity lies in distribution – meeting investors where they already are. “The UAE leads the world in crypto adoption,” he noted. “That’s not about digital currencies, it’s about openness to new models of investing. As an industry, we have to meet investors in those digital spaces.”
Democratising Access, Reducing Barriers
A key part of that mission is to make ETF investing more accessible. Drawing on examples from Europe, Paul described how linking platforms, market makers and custodians more efficiently can lower costs and support fractional ETF ownership, opening the door to smaller investors.
In markets like Germany and the UK, similar models have already helped retail savers invest regularly in diversified ETF portfolios with minimal cost. Applying those principles to newer ETF markets could unlock meaningful retail participation and long-term growth.
While many of these innovations are still evolving, the potential is clear: technology can democratise investment, making markets more inclusive, efficient and responsive to investor needs.
Innovation, Ethics and the Human Element
Technology, however, is only part of the story. As the discussion turned to artificial intelligence, Tohme reminded the audience that progress must remain grounded in human judgment. “AI is the new energy,” he said, “but human ethics and intelligence must guide it. We can’t let automation replace accountability.”
That balance – innovation guided by responsibility – underpinned the whole conversation. Whether through tokenisation, active ETFs or new regulatory models, collaboration between asset managers, infrastructure providers and regulators will be essential to ensure innovation truly benefits the end investor.
A Region Ready to Leap Forward
As the session drew to a close, one conclusion was inescapable: the GCC’s ETF ecosystem has reached an inflection point. The combination of investor demand, market reform and technological readiness is setting the stage for a period of accelerated growth.
For us, being part of that conversation in Abu Dhabi was a privilege – and a reflection of our ongoing commitment to help the investment industry evolve. By building the connectivity and exploring the digital models that will underpin the next generation of funds, we aim to help our clients and partners expand access, efficiency and choice for investors everywhere.
In Abu Dhabi, that future felt close at hand.
