Unprecedented growth in asset management business in Saudi market

Just before the Eid break, the Saudi Capital Market Authority disclosed statistics that are considered unprecedented in the assets management business in the Saudi market. The values of locally managed assets increased from $134 billion in 2019 to $232 billion in 2023, representing a rise of 74.2 percent. As for the revenues, they have reached circa $1.12 billion, representing a rise of 58.6 percent since 2019.

Abdullah Mohammed Binghannam, CMA deputy of financing and investment, highlighted that the sector is one of the most important sources of institutional investments, contributing to providing diversified products and professional management of client resources.

As for the number of funds in the Saudi market, it reached 1,285 by the end of 2023, signifying a surge of 111.7 percent compared to 2019. Additionally, 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.

It is worth noting that during the Future Investment Initiative Forum last October, the Public Investment Fund and the CMA introduced two new initiatives: the Managers’ Gate platform and the Portfolio Management Development Program.

The Capital Market Authority is dedicated to developing various components that will make Saudi Arabia an investment-friendly destination, increasing the efficiency of the Kingdom’s capital market, and enhancing its competitiveness regionally and internationally.

The Managers’ Gate platform aims to promote growth in the asset management ecosystem by exploring potential opportunities and facilitating the PIF’s seamless collaboration with fund managers. The Portfolio Management Development Program aims to provide financial market training of the highest quality to aspiring portfolio managers in the country. The program is dedicated to setting a high standard for portfolio management practices and will play a crucial role in the development and advancement of financial markets in Saudi Arabia.

These latest statistics clearly show that the CMA’s efforts are moving in the right direction to achieve the strategic objectives of the Kingdom’s Vision 2030. The authority is dedicated to developing various components that will make Saudi Arabia an investment-friendly destination, increasing the efficiency of the Kingdom’s capital market, and enhancing its competitiveness regionally and internationally.

As someone who started their career in asset management over 30 years ago, I have witnessed and experienced the evolution of this industry. At BMG Financial Group, our strategic vision encompasses a transformative journey, one that solidifies our position as a pivotal player in the Saudi capital market. Our future partners, distinguished by their unparalleled expertise in inter-generational wealth preservation, private credit fund management, and structured investment fund management — including specialized high technology and environment-social-governance thematic funds — are carefully chosen for their proven track records. This collaboration represents a convergence of strengths, a marriage of expertise and innovation that will elevate Saudi Arabia's asset management industry to unprecedented heights.

Basil M.K. Al-Ghalayini is the chairman and CEO of BMG Financial Group.