Saudi Arabia’s assets under management (AUM) are expected to surpass $300 billion within two years, driven by regulatory reforms and growth in equity and debt markets, according to Fitch Ratings. By mid-2024, AUM had already grown 13.5% year-on-year, reaching $250 billion.
The expanding asset management industry (AMI) in the Kingdom, which is the largest in the Gulf and ranks fifth in the Organization of Islamic Cooperation, is primarily fueled by high-net-worth individuals seeking investment services. Additionally, Saudi Arabia is the second-largest public Islamic funds market worldwide, with about 95% of mutual funds being shariah-compliant.
According to Bashar Al-Natoor, Fitch Ratings’ Global Head of Islamic Finance, the industry’s growth is a direct result of Vision 2030’s Financial Sector Development Program. He highlighted that AUM in Saudi Arabia amounted to 22% of the country’s GDP in 2023, with private funds significantly larger than public funds. Furthermore, competition from international managers is rising as the Kingdom attracts more foreign investors.
The report also noted that net income for capital market institutions grew by 29% year-on-year in the first half of 2024, reaching $1.1 billion, while private funds’ AUM has doubled since 2020.