Arab News, Sat, Apr 06, 2024 | Ramadan 27, 1445
Saudi Arabia witnessing unprecedented growth in asset management industry: CMA official
Saudi Arabia:
Asset management activity revenues of capital market institutions in Saudi
Arabia reached SR4.2 billion ($1.12 billion) in 2023, representing a rise of
58.6 percent in four years.
According to Abdullah bin Ghannam, deputy for
listed companies and investment products at Saudi Arabia’s Capital Market
Authority, the Kingdom has been witnessing unprecedented growth in
this industry.
He highlighted that the sector is one of the most
important sources of institutional investments, as it contributes to providing
diversified products and professional management of client resources, the Saudi
Press Agency reported.
Bin Ghannam said the CMA is looking to develop the
regulatory requirements for investors, and is working to establish new funds
with more flexible structures.
He added: “To measure the performance of the
strategic directions, the Authority will monitor the volume of managed assets,
the number of participants in public and private investment funds, and the ratio
of the volume of funds collected for alternative asset funds to the total public
financing, to ensure that all development steps are moving in the right
direction, and that we are proceeding to achieve our strategic objectives in a
manner that is appropriate.”
The official went on to say: “This will ensure
that all development steps are moving in the right direction and that we are
moving to achieve our strategic goals in line with the objectives of the
Kingdom’s Vision 2030.”
Bin Ghannam revealed that investment funds in the
Kingdom, one of the prominent performance indicators of the asset management
industry, reached 1,285 by the end of 2023, signifying a surge of 11.7 percent
compared to 2019.
Similarly, the number of subscribers to investment
pools jumped to a historic high of more than 1.17 million by the end of 2023,
compared to 334,200 in 2019.
Bin Ghannam pointed out that the values of locally
managed assets increased from SR500 billion in 2019 to SR871 billion in 2023,
representing a rise of 74.2 percent.
According to the official, CMA has identified
various initiatives that could catalyze the growth of the asset management
industry in the Kingdom.
He added that CMA is dedicated to developing
various components that will make Saudi Arabia an investment-friendly
destination, which will increase the efficiency of the Kingdom’s capital market
and enhance its competitiveness regionally and internationally.
In February, Mohammed El-Kuwaiz, chairman of CMA,
said that Saudi Arabia is achieving success and achievements, particularly in
the economic and financial sectors, in accordance with the economic
diversification initiative Vision 2030.
Speaking at the third Saudi Capital Market Forum
held in Riyadh, he recognized the Kingdom’s digital journey, with the fintech
sector claiming the largest share of venture capital.