Saudi Asset Management Sector Projected to Exceed $400 Billion
Fitch Ratings forecasts Saudi Arabia's asset management industry will surpass $400 billion by 2027, driven by regulatory reforms and increased foreign investment.
Saudi Arabia's asset management industry is projected to exceed $400 billion by 2027, according to Fitch Ratings. The sector, which is the largest in the Gulf Cooperation Council, grew 20 percent year-on-year to approximately $370 billion in the first half of 2026, representing 27 percent of the country's gross domestic product.
Private funds now constitute 55 percent of total assets under management, fueled largely by equity and real estate investments. Growth is supported by expanding capital markets and regulatory reforms, including the February removal of qualification requirements for direct foreign investment in the main equity market. Consequently, foreign institutions increased their share of industry revenues to 18.5 percent in the second quarter of 2026, while foreign ownership of freely tradable shares on the Saudi Exchange stood at 12 percent by the end of October.
To further improve transparency, the Capital Market Authority proposed tighter investment fund disclosure requirements in October. While the outlook remains positive, Fitch warns that the sector's expansion faces risks from geopolitical instability, oil-price fluctuations, and interest-rate volatility.
