Total assets under management (AUM) in Saudi Arabia are growing at a healthy pace and have the potential to exceed $500 billion by 2030, S&P Global Ratings said in a new report.

The growth will be driven by ongoing regulatory reforms, continued expansion in debt and equity markets, as well as the increasing availability of exchange-traded funds (ETFs), real estate investment trusts (REITs), and other retail and institutional products.

The Kingdom’s asset management sector expanded by an average of 12% annually over 2015-2024, with total AUM reaching $295 billion as of March 31, 2025.

The sector is poised to benefit from a robust institutional investor base, which is expected to increase domestic and international inflows, improve market liquidity, and expand investment opportunities for Saudi investors.

The number of private funds has surged sixfold since 2013. Currently, private funds account for almost 50% ($148 billion) of AUM in Saudi Arabia’s asset management sector, followed by discretionary mandates at close to one-third ($96 billion), and public funds at about 18% ($51.5 billion), the report said.

Real estate remains the dominant asset class in the GCC, contributing almost 50% ($72.2 billion), followed by equities. 

Equities made up $47.4 billion, or 49% of total discretionary portfolio mandates, as of March 31, 2025. However, public funds showed a more balanced allocation, putting 31% in money markets, 25% in equities, and 13% in debt instruments, as of the same date.

A well-established asset management industry will provide Saudi Arabia’s young and growing population with a wider and more diversified range of investment and savings products, potentially increasing long-term savings ratios, S&P stated.

(Editing by Seban Scaria seban.scaria@lseg.com)