Saudi Arabia witnessing unprecedented growth in asset management industry: CMA official

Asset management activity revenues of capital market institutions in Saudi Arabia reached SR4.2 billion ($1.12 billion) in 2023, representing a rise of 58.6 percent in four years.

According to Abdullah bin Ghannam, deputy for listed companies and investment products at Saudi Arabia’s Capital Market Authority, the Kingdom has been witnessing unprecedented growth in this industry.

He highlighted that the sector is one of the most important sources of institutional investments, as it contributes to providing diversified products and professional management of client resources, the Saudi Press Agency reported.

Bin Ghannam said the CMA is looking to develop the regulatory requirements for investors, and is working to establish new funds with more flexible structures.

He added: “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.”

The official went on to say: “This will ensure that all development steps are moving in the right direction and that we are moving to achieve our strategic goals in line with the objectives of the Kingdom’s Vision 2030.”

Bin Ghannam revealed that investment funds in the Kingdom, one of the prominent performance indicators of the asset management industry, reached 1,285 by the end of 2023, signifying a surge of 11.7 percent compared to 2019.

Similarly, the number of subscribers to investment pools jumped to a historic high of more than 1.17 million by the end of 2023, compared to 334,200 in 2019.

Bin Ghannam pointed out that the values of locally managed assets increased from SR500 billion in 2019 to SR871 billion in 2023, representing a rise of 74.2 percent.

According to the official, CMA has identified various initiatives that could catalyze the growth of the asset management industry in the Kingdom.

He added that CMA is dedicated to developing various components that will make Saudi Arabia an investment-friendly destination, which will increase the efficiency of the Kingdom’s capital market and enhance its competitiveness regionally and internationally.

In February, Mohammed El-Kuwaiz, chairman of CMA, said that Saudi Arabia is achieving success and achievements, particularly in the economic and financial sectors, in accordance with the economic diversification initiative Vision 2030.

Speaking at the third Saudi Capital Market Forum held in Riyadh, he recognized the Kingdom’s digital journey, with the fintech sector claiming the largest share of venture capital.