RIYADH: Fitch Ratings projects that Saudi Arabia’s assets under management will grow to $300 billion in the next two years due to regulatory improvements and the country’s developing debt and equity capital markets.
According to the credit rating agency’s most recent assessment, by the end of the first half of 2024, AUM in the Kingdom’s asset management sector had grown by 13.5 percent annually, topping $250 billion. A growing number of high-net-worth individuals in Saudi Arabia will be the driving force behind the asset management industry’s (AMI) expansion in the second half of this year and in 2025.
The Kingdom is ranked fifth among nations in the Organisation of Islamic Cooperation and has the largest AMI in the Gulf Cooperation Council area. Fitch also pointed out that the world’s second-biggest public Islamic fund market is in Saudi Arabia.
“We expect Saudi Arabian AUM to cross $300 billion within a couple of years, driven by Vision 2030’s Financial Sector Development Program,” stated Bashar Al-Natoor, global head of Islamic finance at Fitch Ratings. As a result of the high demand for Islamic products, 95% of mutual funds are shariah-compliant.
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