Riyadh’s Capital Market Thriving: Asset Management Revenues Soar
In a remarkable surge, asset management activity revenues of capital market institutions in Saudi Arabia soared to SR4.2 billion ($1.12 billion) in 2023, marking a substantial increase of 58.6 percent over four years.
Unprecedented Growth in Saudi Arabia’s Asset Management Industry
Abdullah bin Ghannam, deputy for listed companies and investment products at Saudi Arabia’s Capital Market Authority, emphasized the Kingdom’s unprecedented growth in the asset management sector. He highlighted its critical role as a key source of institutional investments, offering diversified products and professional resource management.
Regulatory Developments and New Fund Structures in the Works
Bin Ghannam mentioned that the CMA is actively working on enhancing regulatory requirements for investors and establishing new funds with more flexible structures. The Authority aims to monitor managed assets, public and private investment fund participation, and fund collection ratios to ensure strategic objectives align with the Kingdom’s Vision 2030.
Surge in Investment Funds and Subscribers
By the end of 2023, investment funds in Saudi Arabia totaled 1,285, a significant 11.7 percent increase from 2019. The number of subscribers to investment pools also reached a historic high of over 1.17 million, compared to 334,200 in 2019. Locally managed assets saw a substantial increase from SR500 billion in 2019 to SR871 billion in 2023, reflecting a rise of 74.2 percent.
Initiatives Driving Growth in the Asset Management Industry
CMA has identified key initiatives to fuel the growth of the asset management industry in Saudi Arabia. By developing components that enhance investment attractiveness, the Kingdom aims to boost the efficiency and competitiveness of its capital market both regionally and internationally.
Success in Economic and Financial Sectors Aligning with Vision 2030
Mohammed El-Kuwaiz, chairman of CMA, highlighted Saudi Arabia’s achievements in the economic and financial sectors, aligning with the goals of Vision 2030. The Kingdom’s digital journey, with the fintech sector leading in venture capital investments, showcases its commitment to economic diversification and growth.