Saudi Arabia’s assets under management exceeds $250b

Dubai: Saudi Arabia's assets under management (AUM) experiences double-digit growth and are expected to increase by approximately $50 billion (Dh183 billion) in the near term, driven by recent regulatory reforms and the expansion of equity and debt capital markets.

AUM is a financial metric used to quantify the total market value of assets that a mutual fund manages on behalf of its investors at a specific point in time.

By the end of the first half of 2024, the total AUM in Saudi Arabia surpassed $250 billion (Dh918 billion), marking a 13.5 per cent rise compared to the previous year, according to a report from Fitch Ratings.

In the next couple of years, AUM could reach $300 billion (Dh1.1 trillion), fuelled by Saudi Arabia's diversification strategies.

As of 2023, the industry's AUM represented 22 per cent of the gross domestic product (GDP), with private funds being three times larger than public funds.

Since 2020, the value of private funds' AUM has doubled, with equities making up 43 per cent and real estate 40.5 per cent.

For public funds, about 28 per cent is allocated to money markets, followed by equities at 25.6 per cent, real estate investment trust (REIT)s at 18.7 per cent, and debt at 16 per cent.