The asset management domain within Saudi Arabia has demonstrated a notable surge in activity revenues, reaching SR4.2 billion ($1.12 billion) in 2023, marking a significant 58.6 percent increase over the span of four years.
Abdullah bin Ghannam, the deputy for listed companies and investment products at the Kingdom’s Capital Market Authority (CMA), has shed light on the unprecedented expansion of this sector. He accentuated the pivotal role of asset management in fostering institutional investments by offering a variety of investment products and expert management of client assets, as reported by the Saudi Press Agency.
Bin Ghannam underlined the CMA’s commitment to refining regulatory requirements for investors and to the creation of new funds with more adaptable structures.
To measure the performance of the strategic directions, the Authority will monitor the volume of managed assets, the number of participants in public and private investment funds, and the ratio of the volume of funds collected for alternative asset funds to the total public financing, to ensure that all development steps are moving in the right direction, and that we are proceeding to achieve our strategic objectives in a manner that is appropriate,
he explained.
He further emphasized the alignment of these developmental strides with the Kingdom’s ambitious Vision 2030 plan.
Bin Ghannam revealed a notable uptick in the investment fund sector, a key performance indicator, with the count reaching 1,285 by the end of 2023—an 11.7 percent increase from 2019. Additionally, the number of investment fund subscribers soared to an unprecedented 1.17 million by year-end 2023, a leap from 334,200 in 2019.
He also detailed the ascent of locally managed asset values, which swelled from SR500 billion in 2019 to SR871 billion in 2023, a robust 74.2 percent climb.
The CMA has pinpointed several initiatives poised to stimulate further growth in the asset management industry of the Kingdom. The authority is resolute in enhancing various elements to position Saudi Arabia as an attractive investment hub, thereby augmenting the capital market’s efficiency and its competitive edge both regionally and internationally.
In remarks made at the third Saudi Capital Market Forum in Riyadh, CMA Chairman Mohammed El-Kuwaiz acknowledged the Kingdom’s strides in economic and financial domains, guided by the economic diversification blueprint, Vision 2030. He also hailed the Kingdom’s digital progression, with fintech receiving the lion’s share of venture capital investments.