Saudi asset management industry tops SAR1 trillion, says Fitch
The industry is likely to attract steady inflows in 2025–2026, with AUM set to surpass SAR1.3 trillion ($350 billion), due to the growing investor base, favourable demographics, ongoing reforms, deepening capital markets, and digital transformation moves.
However, the market is not immune from global volatilities, such as those caused by the US government's tariff rises on 2 April. Oil price changes are amongst the key factors that could affect the industry.
"Saudi Arabia's asset management industry is the largest in the GCC, with AUM having crossed SAR1 trillion, and further growth expected," said Bashar Al Natoor, the Global Head of Islamic Finance at Fitch.
"Almost all mutual funds listed on the Saudi Exchange are sharia-compliant, indicating strong demand for Islamic products," he stated.
Saudi bank-affiliated asset managers held nearly two thirds of industry revenue. However, international competition is rising.
BlackRock, Goldman Sachs, Morgan Stanley, Citigroup, and Mizuho Bank received regulatory approval to set up their regional headquarters in Saudi Arabia in 2024. The government is aiming for the industry AUM to reach 40% of the GDP by 2030 (2024: 26%), stated Fitch in its report.
About half of the industry's AUM were in private funds, followed by discretionary portfolio management (DPM), and public funds.
The private funds' AUM are split mainly between real estate and equities. About half of AUM under DPM are in local shares. Public funds' AUM are split between money market funds, equities, REITs, and debt instruments, it stated.
The combined capitalisation of GCC listed equity markets crossed $4 trillion at end-2024, dominated by the Saudi Exchange.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Insider
29 minutes ago
- Gulf Insider
Is Saudi Arabia's Riyadh Going To Be The 'Super Hub Of The Future'?
Riyadh as a 'super hub of the future'? That's what the real estate consultancy Knight Frank is projecting as the Saudi city oversees one of the most ambitious and fast-track developments, whether it's infrastructure, housing, office towers, or creating retail and entertainment destinations. 'The Saudi capital is rapidly transforming into a dynamic destination for global wealth… strategically diversifying its economy away from oil dependence and evolving into a powerhouse for finance, culture and lifestyle,' says Knight Frank. Riyadh continues to attract 'significant domestic and international business activity' – and which led to nation-wide unemployment rate fall to a record low of 7% in Q4-2024′. In the final quarter of last year, Saudi Arabia issued more than 160,000 new business licences, which is a 67% increase from the same period the year before. It brought the total number of registered commercial entities in the Kingdom to more than 1.6 million. 'A key initiative is the 'Regional Headquarters Programme', which has already surpassed its 2030 target, with around 600 international companies,' says the report. This includes corporate giants such as Bechtel, Northern Trust and PwC,w which have committed to 'establishing regional bases in Riyadh'. All of which has led to Grade-A office vacancy rates of 'just 2%', while prime office rents surged by 23% in the past year (and by 84% since Q1-2020). Riyadh's office inventory is projected to expand from 5.5 million square metres to 9.8 million square metres by 2027. 'This growth is supported by state-led infrastructure developments and rising interest from institutional investors targeting long-term exposure to the Kingdom's evolving office landscape,' says the statement. In parallel, the infrastructure investments are moving more or less on schedule. There are the attractions such as the 220-kilometre stretch of Sports Boulevard, an 'expanding' King Khalid International Airport – currently serving 113 domestic and international destinations – and the Riyadh Metro and public bus network. 'These developments are attracting expatriates, entrepreneurs and families, reshaping perceptions and reinforcing Riyadh's emergence as a global city of choice for the next generation of talent,' says Knight Frank. 'Combined with the rise in major multinationals opening offices in the city and high-quality residential and leisure developments, Riyadh has a uniquely compelling offer as a live-work-play destination both within the GCC and globally,' said Harmen De Jong, Regional Partner – Head of Consultancy, MENA at Knight Frank.
Syyaha
an hour ago
- Syyaha
IHG Hotels & Resorts Signs Crowne Plaza Madinah Al Haramain, Expanding Premium Portfolio in Saudi Arabia's Holy City
Madinah, Saudi Arabia – 16 July 2025: IHG Hotels & Resorts, one of the world's leading hotel companies, has announced the signing of Crowne Plaza Madinah Al Haramain, a 383-key hotel in partnership with Arbah Tayba Real Estate Company. Slated to open in 2026, the hotel will be managed by IHG and will further strengthen the company's premium portfolio in one of Saudi Arabia's most significant religious and cultural destinations. Located opposite the new Haramain high-speed railway station in Madinah, the hotel will offer direct access to the station via an underground tunnel, providing guests with effortless connectivity to major cities including Jeddah and Makkah. Crowne Plaza Madinah Al Haramain is part of a larger mixed-use development and in proximity to other upcoming key projects such as Knowledge Economic City and Rua Al Madinah, making it an ideal choice for travellers seeking convenience, comfort, and modern amenities just outside the bustling city centre. Upon completion, the hotel will feature 383 well-appointed rooms and suites, along with two signature food and beverage outlets. Its design and services will reflect Crowne Plaza's premium identity, prioritising seamless integration between work and leisure for today's modern traveller. Haitham Mattar, Managing Director, IHG Hotels & Resorts, India, Middle East and Africa, commented: ' As the Kingdom continues to enhance its tourism and hospitality offering in line with Vision 2030, we remain committed to bringing world-class experiences and trusted brands to Saudi guests and global travellers. This partnership with Arbah Tayba Real Estate Company to introduce Crowne Plaza Madinah Al Haramain is the latest milestone in our growing Saudi portfolio and further underlines our commitment to the Kingdom.' He added: 'Our Crowne Plaza brand crafts experiences that suit every journey, inspiring connection, collaboration, and well-being of our guests. It perfectly suits the broad spectrum of travellers visiting the Holy City, from religious pilgrims to the growing number of business visitors. We look forward to working with our partners to further advance the hospitality sector in Madinah.' Mr. Abdulaziz Al Qafary, CEO of Arbah Tayba Real Estate Company said, 'We are proud to collaborate with IHG Hotels & Resorts on a project that reflects our shared commitment to shaping the future of Madinah's hospitality and infrastructure landscape. Strategically located with direct access to key transport links, Crowne Plaza Madinah Al Haramain is set to meet the evolving needs of today's travellers – offering convenience, seamless connectivity, and a trusted international hospitality experience. This partnership underscores our focus on delivering high-quality developments that enhance access, elevate the guest journey, and support the city's long-term growth.' Madinah is undergoing rapid development, driven by government-led initiatives and giga projects to meet Saudi Arabia's Vision 2030 goals. As a key spiritual and tourism hub, the city is poised for significant growth, with enhanced infrastructure, transportation, and hospitality services key pillars in its evolution. Crowne Plaza has long been a pioneer in blending business and leisure travel. The brand's thoughtfully designed guest rooms, flexible meeting and event spaces, and integrated social areas enable guests to connect, work, or unwind effortlessly. With a bold new brand identity, Crowne Plaza continues to lead the premium hotel segment across urban centres and gateway cities around the world. IHG currently operates 45 hotels across six brands in Saudi Arabia, including: InterContinental, Crowne Plaza, Holiday Inn, Staybridge Suites, and voco, with 47 hotels in the development pipeline set to open within the next three to five years.
Biz Bahrain
12 hours ago
- Biz Bahrain
Khaleeji Bank announces its sponsorship of the Bahrain Padel Federation Cup
Khaleeji Bank, one of the leading Islamic banks in the Kingdom of Bahrain, has recently signed a sponsorship agreement with the Bahrain Padel Federation to support the Federation Cup under the title of 'Khaleeji Federation Cup' between 16th – 19th July 2025, in Padel Kingdom Courts, with the participation of top local players. The signing ceremony was held at Khaleeji Bank's headquarters in GFH Tower, Manama, where Mr. Mohamed Abdulla Saleh, Assistant General Manager of legal, regulatory and Corporate Affairs, signed on behalf of the Bank, while Mr. Fahad Fawzi Kanoo, Chairman of the Bahrain Padel Federation, signed for the Federation, in the presence of senior officials from both sides. This sponsorship underscores Khaleeji Bank's dedication to supporting Bahrain's youth and sports sector as a key pillar of its corporate social responsibility. It reflects the Bank's commitment to investing in the future of the youth and national sport, in line with the Kingdom's vision of promoting sport as an essential driver of social progress, the directives of the wise leadership, and the tireless efforts spearheaded by His Highness Shaikh Nasser bin Hamad Al Khalifa, HM the King's Representative for Humanitarian Work and Youth Affairs and Chairman of the Supreme Council for Youth and Sports, with the follow-up of His Highness Shaikh Khalid bin Hamad Al Khalifa, First Deputy Chairman of the Supreme Council for Youth and Sports, Chairman of the General Sports Authority and President of the Bahrain Olympic Committee. On this occasion, Mr. Mohamed Abdulla Saleh, Assistant General Manager of Legal, Regulatory, and Corporate Affairs at Khaleeji Bank, stated: 'We are delighted to announce this sponsorship, which embodies Khaleeji Bank's ongoing commitment to supporting national sporting initiatives and enabling the youth to develop their abilities across various sports, particularly Padel, which has witnessed remarkable growth and popularity in recent years. We are confident that the Khaleeji Federation Cup will elevate local competition and reinforce the Kingdom's position on the regional sporting map, in line with our vision to invest in talent and empower it to achieve sustainable success both locally and internationally.' On his part, Mr. Fahad Fawzi Kanoo, Chairman of the Bahrain Padel Federation, said: 'We are pleased with our partnership with Khaleeji Bank to launch the Khaleeji Federation Cup, an important step towards enhancing padel and attracting more players and fans. This support will enable us to organise a championship that raises standards, provides a platform to discover and refine promising talents, and strengthens Bahrain's presence regionally and globally in the sport.' Khaleeji is a leading Islamic bank that strives to achieve clients' ambitions through an Islamic banking model that offers a comprehensive range of high quality Shari'a-complaint banking services and investment opportunities to individuals and companies.
