Saudi asset management industry exceeds SAR 1 Trillion: Fitch
The Saudi Arabian asset management industry grew by over 20% in 2024, exceeding SAR1 trillion (USD266 billion) assets under management (AUM) for the first time, Fitch Ratings says. The industry is likely to attract steady inflows in 2025– 2026, with AUM set to surpass SAR1.3 trillion (USD350 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 volatil- ities, 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, 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.' S a u d i 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 regulato- r y 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%).
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 USD4 trillion at end-2024, dominated by the Saudi Exchange. Foreign investor ownership in Saudi stocks reached 10.8% in 9M24 (2023: 12.8%). About 63% of the Saudi debt capital market is in sukuk, with almost all Fitch-rated Saudi sukuk being investment-grade.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Tribune
a day ago
- Daily Tribune
Gold futures hit record on US tariff shock, stocks wobble
TDT | London Gold futures hit a record high yesterday after reports of an unexpected tariff on the precious metal, while stock markets fluctuated as investors tracked US President Donald Trump's latest moves. Oil prices added to losses from the previous day on news of a meeting between Trump and Russian leader Vladimir Putin, perhaps as early as next week, which raised hopes of a truce with Ukraine. Gold futures reached a new intraday high at $3,534.10 an ounce after the Financial Times reported that Washington had classified one-kilo bars, the most traded type of bullion on Comex -- the world's biggest futures market, as subject to 'reciprocal' tariff rates. One-kilo bars make up the largest part of Switzerland's gold shipments to the United States. Imports from Switzerland face a 39-percent reciprocal tariff from Thursday. The FT said 100-ounce bars would also face the levy. The levy caused 'shock and confusion' in markets, said Han Tan, chief market analyst at trading group. The gold future price pulled back to $3 an ounce. Spot gold prices sat around $3,400 an ounce.
Daily Tribune
3 days ago
- Daily Tribune
Hong Kong's Cathay Pacific unveils deal to buy 14 Boeing jets
TDT | Hong Kong Hong Kong carrier Cathay Pacific said on Wednesday it would place a US$8.1 billion order for 14 Boeing jets, its first with the US aircraft maker for more than a decade. The airline said in a filing to the city's stock exchange it would "purchase 14 Boeing 777- 9 aircraft" and had "secured the right to acquire up to seven additional Boeing 777-9 aircraft". The new order expects the aircraft to be delivered by 2034, according to a separate filing. Cathay was one of the first buyers to commit to Boeing's 777X programme when it unveiled the purchase of 21 aircraft in 2013. Boeing said in a statement the new deal brought the order book of 777-9 aircraft -- "the world's largest twin-engine airplane" -- to 35. The jets, designed to reduce fuel use and emissions, would meet Cathay's growing global travel demand, it said. "Boeing certainly had a troubled period in the recent past, but we are very encouraged by the renewed focus that Boeing leadership has on engineering and production quality," Cathay's operations and service delivery officer Alex McGowan told a news conference. Cathay already has a fleet of more than 230 mostly passenger aircraft, consisting of Boeing and Airbus jets. It has agreed to buy more than 100 new aircraft, it said on Wednesday, adding that the new order has brought Cathay's total investment to $12.7 billion (HK$100 billion).
Daily Tribune
3 days ago
- Daily Tribune
Businessman on Trial for Faking Brother's Death in $500,000 Insurance Scam
TDT | Manama A businessman appeared before the High Criminal Court accused of orchestrating a fake death scheme involving his brother to fraudulently claim a $500,000 life insurance payout. The man, who was reported dead, was later discovered to be alive and living abroad. The case revolves around a 44-year-old investor who had taken out a life insurance policy in April 2023, listing his wife as the beneficiary. Just four months later, the insurance company received a death notice from a broker, claiming the policyholder had died in an Asian country. A claim was submitted, and a civil court initially ruled in favour of the wife. However, when the insurance company requested supporting documents, inconsistencies began to emerge, eventually uncovering the alleged fraud.
