According to the latest study by S&P Saudi Arabia's asset management sector grew by an average of around 12 percent per year between 2015 and 2024, with assets under management (AUM) reaching around 295 billion dollars as of March 31, 2025.

Sought-after asset classes: ETFs and REITs

Timucin Engin, Head of Research and Strategy at S&P in Riyadh, Saudi Arabia, continues to see the largest Gulf state on track in the field of asset and fund management: «We expect that assets under management (AUM) will continue to grow at a healthy pace and could exceed half a trillion US dollars by the end of 2030 — subject to market conditions. This is due to ongoing regulatory efforts, as well as the continued growth of debt and equity markets, and the increasing availability of exchange-traded funds (ETFs), real estate investment trusts (REITs), and other retail and institutional products.»

More institutional investors needed

However, in terms of market breadth and depth, Engin sees room for improvement: «Local capital markets in Saudi Arabia would benefit from a strong base of institutional investors — through potentially higher domestic and international capital inflows, as well as increased liquidity,» says the chief analyst. He adds: «In addition, a well-established asset management industry would give Saudi Arabia’s young and growing population access to a broader and more diversified range of investment and savings products, which could help increase long-term savings rates.»

Thumbs up for financial regulators

Engin also has praise for recent regulatory initiatives: «In July 2025, the Saudi Capital Markets Authority (CMA) published several amendments to investment fund regulations to further improve transparency, disclosure, risk management, and the protection of investment funds. Among other things, public funds are now permitted to invest in privately placed debt instruments, which could benefit the country’s emerging private credit sector.»

Unlike Gulf states such as the UAE and Bahrain, where the majority of residents are foreign workers, Saudi citizens make up the majority of the population in their own country. This means greater potential for long-term investments and stronger customer loyalty — assuming the financial products perform well. The resulting high demand for housing casts a shadow over the asset management landscape: of the Kingdom’s 35 million residents, around 60 percent are citizens (compared to just one-eighth in the UAE).

Concrete gold still popular

Engin: «Real estate — a highly popular asset class in the Gulf Cooperation Council (GCC) region — accounts for nearly 50% (USD 72.2 billion) of the assets under management (AUM) of Saudi private funds, followed by equities. Real estate investments are the main focus of nearly half of all private funds in the country, followed by equity investments.»

According to S&P, this leads to a heightened concentration risk in Saudi asset management. «The number of public fund subscribers has increased. The number of investors in public funds rose from around 265,000 in June 2013 to nearly 1.6 million in March 2025. Around one-third of Saudi public fund subscribers are invested in REITs, which significantly contributed to this growth,» explains the financial expert.

REIT stands for Real Estate Investment Trust. A REIT is a company that owns, operates, or finances income-generating real estate. It allows private investors to purchase shares in a property portfolio and receive dividends — without having to directly own or manage the properties.

«We expect that AUM in Saudi Arabia’s asset management industry could exceed USD 500 billion by the end of 2030 — subject to market conditions,» says Engin. This expectation is based on strong employment and demographic trends, continued high issuance activity in debt and equity markets, a growing variety of products for both retail and corporate clients, as well as ongoing regulatory initiatives.
«Long-term growth in the sector is also supported by the continued introduction of new products such as REITs and ETFs,” adds Engin.

According to the Capital Markets Authority (CMA), public and private funds allocate the majority of their assets under management to real estate (36 percent), followed by equities (34 percent) and debt and money market instruments (13 percent).

Global brands move in

The momentum in KSA — as the country is known in banking circles — has attracted some of the biggest names in asset management.

Lazard from New York recently named its Riyadh branch the Middle East regional headquarters — an honor that historically went to Dubai offices. BlackRock, which has had a presence in Riyadh since 2019 and received approval in 2024 to establish its regional HQ, is also active — as are Goldman Sachs, Morgan Stanley, and Australia’s Macquarie Asset Management.

The International Monetary Fund (IMF) recently raised its growth forecast for Saudi Arabia to 3.6 percent for 2025 and 3.9 percent for 2026. These upgrades from the April 2025 forecast are due to higher oil revenues following the phase-out of OPEC+ production cuts, stronger-than-expected oil prices, and strong momentum in non-oil sectors, driven by robust domestic demand and government-led projects.