Saudi Arabia’s AUM Cross $266 Billion in 2024

The Saudi Arabian asset management industry grew by over 20% in 2024, exceeding $266 billion of assets under management (AUM) for the first time, US credit rating agency Fitch Ratings said.

The industry is likely to attract steady inflows in 2025–2026, with AUM set to surpass $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 April 2. Oil price changes are amongst the key factors that could affect the industry.

Bashar Al Natoor, Global Head of Islamic Finance at Fitch, said that Saudi Arabia’s asset management industry is the largest in the GCC, with AUM crossing $266 billion, and further growth expected. Almost all mutual funds listed on the Saudi Exchange are sharia-compliant, indicating strong demand for Islamic products, he said.

Saudi bank-affiliated asset managers held nearly two thirds of industry revenue but 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, from 26% in 2024.

Private Funds Dominate

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.

The combined capitalisation of GCC listed equity markets crossed $4 trillion at end-2024, dominated by the Saudi Exchange. Foreign investor ownership in Saudi stocks reached 10.8% in the first nine months in 2024 compared with 12.8% in the previous year.

About 63% of the Saudi debt capital market is in sukuk, with almost all Fitch-rated Saudi sukuk being investment-grade, Fitch Ratings said.

Saudi Arabia boasts the largest asset management industry in the GCC, with AUM representing 22% of GDP in 2023. Private funds, three times the size of public funds, have doubled in value since 2020, with equities (43%) and real estate (40.5%) leading allocations.

This rapid growth reflects global investor confidence, backed by strategic investments from the Public Investment Fund (PIF) in tech, renewable energy, and healthcare. As the Kingdom continues to modernise its financial markets and adopt global best practices, it solidifies its position as a premier destination for sustainable capital.