The growth trajectory of Saudi Arabia’s asset management industry (AMI) is expected to continue with assets under management (AUM) projected to exceed $400 billion in 2026, maintaining the kingdom’s lead in the Gulf region, Fitch Ratings says in a new report.

Islamic funds are expected to remain dominant. However, the AMI remains exposed to oil-price sensitivity, local, regional and global market volatility and geopolitical risks. 

Tadawul’s equity market capitalisation fell around 13% yoy at end-August 2025, weighing on equity-linked fee and performance income.

"Saudi Arabia’s AMI is on a steady growth path, supported by ongoing reforms and deeper local capital markets," said Bashar Al Natoor, Global Head of Islamic Finance at Fitch Ratings. 

"Sharia-compliant funds remain the majority, with product breadth widening across areas such as new IPOs, sukuk and bonds, ETFs and private credit. New initiatives such as voluntary pension and savings scheme should enhance access and liquidity. Although market volatility and oil-price sensitivity pose near-term risks, foreign participation is rising and Saudi sukuk largely carry investment-grade ratings, supporting resilience," he added.

According to Fitch, PIF’s recent MoUs with global asset managers such as BlackRock, Franklin Templeton, Neuberger Berman, Northern Trust Asset Management total about $12 billion and support foreign capital and expertise inflows. 

Saudi bank-affiliated asset managers held 63.5% of industry revenue. However, international and regional institutions’ share rose to about 15% (1H24: 12.5%), it stated.

The industry AUM grew 21% yoy at the end of H125 to $306.1 billion with roughly half in private funds, followed by discretionary portfolio management, and public funds. 

The government aims for AUM to reach 31% of GDP in 2025 and 40% by 2030, from about 23% in 1H25. Foreign investors held 7.6% of government local debt issuances in June 2025 (2023: 5.2%), it added.-TradeArabia News Service