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governance, introducing partial settlements and compulsory buyins by T + 4. Bahrain, as highlighted by the Central Bank of Bahrain, is implementing digital initiatives such as electronic shareholder voting and digital account opening to improve transparency and investor access. Despite these efforts, the broader GCC market still lacks a unified approach. A 2023 report from the World Bank notes that inconsistent regulatory frameworks across the region continue to increase operational costs and slow foreign investment inflows. Greater regulatory alignment could streamline operations and provide much-needed clarity for global investors. Beyond regulation, custodians are grappling with the growing demand for real-time data and customised client experiences. Investors now expect seamless access to market data across asset classes, including digital assets Echague says:“ Increasing client demand for more granularity and realtime data means that custodians need to continuously improve their data strategies to bring clients closer to the market through real-time connectivity via multiple channels.”
Relationships are key When it comes to custodial services in the Middle East, one of the most crucial elements to success is relationships. Khalid says:“ It’ s all about relationships in this region. The way business is done here isn’ t just about transactions – it’ s about winning trust, building relationships, and being in it for the long haul. That’ s how you establish business here. It’ s not just about coming in, pitching a product, and closing a deal. It’ s about taking the time to develop trust and proving that you’ re committed to the region.” While trust in partnerships is important for global custodians worldwide, it’ s particularly true here. Success in the Middle East depends on cultivating fruitful, longterm relationships. Trust is first and foremost the cornerstone of every deal or partnership, and firms need to demonstrate a commitment to the region. The emphasis on trust-building rather than just selling a product highlights the importance of genuine engagement in the Middle Eastern market. El Habre adds:“ Asset owners and managers in the Middle East differ from those in other regions in their preference for long-term, relationshipdriven partnerships and a greater emphasis on capital preservation and risk management, especially in family offices and SWFs.” This cultural dynamic means that custodians and asset managers must go beyond transactional engagement. They need to really put themselves out there in the market, to understand the nuances of regional investment strategies, risk appetites, and long-term objectives. It’ s not just about selling a service – it’ s about becoming a trusted partner who adds value beyond the immediate deal. Heavyweights such as the Abu Dhabi Investment Authority( ADIA), the Kuwait Investment Authority( KIA), and Saudi Arabia’ s Public Investment Fund( PIF) command portfolios worth hundreds of billions of dollars each, making them some of the most influential institutional investors in the world. These funds don’ t just passively hold wealth- they actively deploy capital into global markets, from technology and infrastructure to private equity and real estate. The scale and sophistication
42 Global Custodian Spring 2025