Saudi Asset Management Industry Experiences Surge in Revenue and Subscribers

Saudi Arabia's asset management industry is experiencing a period of phenomenal growth, according to a recent statement by Abdullah bin Ghannam, deputy for listed companies and investment products at the Saudi Arabian Capital Market Authority (CMA).

Ghannam highlighted a significant rise in revenue generated by asset management activities within the country's capital market institutions. These revenues reached a record-breaking SR4.2 billion (US$1.12 billion) in 2023, reflecting a substantial increase of 58.6% over the past four years. This growth trajectory paints a positive picture for the industry's future, solidifying its position as a key driver of institutional investment in the Kingdom.

The industry's appeal extends beyond just financial returns. Asset management firms offer a valuable service by providing clients with professionally managed and diversified investment options. This allows individuals to invest their resources strategically, mitigating risk and maximizing potential returns.

The positive trend extends beyond just revenue figures. The number of individuals participating in investment pools within Saudi Arabia has witnessed a dramatic rise. By the end of 2023, the subscriber base had reached an all-time high of over 1.17 million, a significant increase compared to the 334,200 subscribers recorded in 2019. This surge in participation reflects a growing awareness and interest in investment opportunities among the Saudi population.

Furthermore, the total value of assets managed domestically has also seen a substantial increase. This figure climbed to SR871 billion (US$231.7 billion) in 2023, representing a remarkable growth of 74.2% since 2019, when the value stood at SR500 billion (US$133.3 billion). This significant rise in domestically managed assets underscores the increasing confidence that Saudi investors have placed in the local asset management industry.

The CMA plays a crucial role in fostering the growth of this industry. The regulatory body has identified and implemented various initiatives specifically designed to propel the asset management sector forward. These initiatives aim to create a more robust and investor-friendly environment, attracting further investment and propelling the industry to even greater heights.

The unprecedented growth currently being experienced by Saudi Arabia's asset management industry presents a promising outlook for the future. With increasing participation, rising revenue figures, and a supportive regulatory framework, the industry is well-positioned to play a vital role in the Kingdom's economic development.

Previous Article Next Article