Saudi Arabia Asset Management

Executive Summary

The asset management industry which acts as a vital link between investors seeking investment avenues and institutions with financial needs offers immense potential for growth in Saudi Arabia. Significant growth opportunities offered by the prospects of economic growth in the region driven by oil wealth, against a bleak outlook globally argue favorably for the industry. The positive momentum witnessed post-up-gradation of UAE & Qatar into MSCI Emerging market indices could spur Saudi Arabia to initiate market reforms including, open up their markets, which will be a game-changer for the industry. The KSA asset management industry manages USD 26,687 Mn in assets in about 141 funds. In terms of products, money market funds lead the pack followed by specialized funds. In the KSA asset management industry, Islamic funds manage USD 22,983 Mn accounting for more than 90% of the assets, and rest are conventional. In terms of the number of funds, there are 90 equity funds, 30 money market funds, and 21 specialized funds.

The report provides details of the total size of the asset management industry in Saudi Arabia in terms of value and volume, the share of each asset class, and Islamic vs. conventional approach. The report details information about market segments and its participants; analyses fund performance, regulatory developments, and challenges being faced. In-depth fund performance analysis based on geographical focus including alpha generated by the fund against respective benchmark and top fund managers based on AUMs being managed, marketing/distribution strategy of funds have also been included.