According to Fitch Ratings, the asset management sector in Saudi Arabia expanded by more than 20% in 2024 and for the first time surpassed SAR1 trillion (USD 266 billion) in assets under management (AUM).
Due to the expanding investor base, favourable demographics, continuous reforms, deepening capital markets, and digital transformation initiatives, the industry is anticipated to see consistent inflows in 2025–2026, with AUM expected to surpass SAR1.3 trillion (USD 350 billion).
Global fluctuations, like those brought on by the United States government’s tariff hikes on April 2, can still affect the market. One of the main elements that could have an impact on the sector is changes in the price of oil.
Bashar Al Natoor, Global Head of Islamic Finance at Fitch, said, “Saudi Arabia’s asset management industry is the largest in the GCC, with AUM having crossed SAR1 trillion, and further growth expected. Almost all mutual funds listed on the Saudi Exchange are sharia-compliant, indicating strong demand for Islamic products.”
Asset managers connected to Saudi banks accounted for almost two-thirds of industry revenue. Nonetheless, global competition is intensifying.
The establishment of regional headquarters in Saudi Arabia in 2024 was approved by regulators for BlackRock, Goldman Sachs, Morgan Stanley, Citigroup, and Mizuho Bank.
In October 2024, an earlier report by Fitch noted that growth in 2025 would be further supported by a rising number of high-net-worth individuals seeking asset management services within the Kingdom.
Fitch now sees international competition likely intensifying as global players such as BlackRock, Goldman Sachs, and Morgan Stanley, as well as Citigroup and Mizuho Bank, have received regulatory approval to establish regional headquarters in the Kingdom.
According to Fitch’s report, by 2030, the government wants the industry’s AUM to account for 40% of GDP (2024: 26%).
Discretionary portfolio management (DPM) and public funds accounted for about half of the industry’s AUM, with private funds coming in second.
Real estate and stocks make up the majority of the private funds’ AUM. Local shares make up around half of AUM under DPM. It said that money market funds, stocks, REITs, and debt instruments make up a portion of the AUM of public funds. The Fitch analysis also highlighted that around half of Saudi Arabia’s AUM is held in private funds, followed by discretionary portfolio management and public funds.
The Saudi Exchange dominated the GCC listed equity markets, which at the end of 2024 had a combined capitalisation of over USD 4 trillion.