Abdullah bin Ghannam, Undersecretary of the Saudi Capital Market Authority for Finance and Investment, explained that the Authority attaches the utmost importance to the asset management industry as it is one of the main securities businesses regulated by the Authority, and it is also one of the most important sources of institutional investment. This industry contributes to providing diverse investment products and professional management of clients’ assets.
Bin Ghannam added that the most prominent performance indicators of the asset management industry achieved historic highs, as investment funds recorded a new record, considered the highest historically, reaching 1,285 investment funds in 2023, compared to 607 funds in 2019, an increase of 111.7 percent.
The number of subscribers to investment funds jumped to more than 1.17 million subscribers by the end of 2023, compared to 334.2 thousand subscribers in 2019, with a growth rate of 251 percent, thus recording a new record, the highest in history.
Bin Ghannam indicated that the values of assets managed locally rose from 500 billion riyals (about 133.3 billion dollars) in 2019 to 871 billion riyals (232.2 billion dollars) in 2023, rising by 74.2 percent, noting that this significant increase is due to an upward rise. In the asset values of funds and private portfolios, in addition to a rapid growth in the number of private portfolios, which also rose at a record high, having exceeded 156,000 portfolios by the end of 2023, compared to 1,662 portfolios in 2019, an increase of 9,304 percent, according to the Saudi News Agency.
The Undersecretary of the Capital Market Authority for Finance and Investment confirmed that the Authority has identified initiatives aimed at supporting the growth and development of the asset management industry, based on its strategic objectives for an advanced financial market, developing the components of the investment environment, and facilitating investment methods, in a way that contributes to raising the efficiency of the Saudi financial market and enhances its regional competitiveness. Internationally, the most prominent of which is the development of regulatory frameworks to increase and decrease the total value of the assets of public and traded closed-end investment funds, which aims to enable the funds to access capital in a way that enhances their c
ompetitiveness and attractiveness.
He added that one of the most prominent strategic initiatives of the Authority is that which is concerned with developing the regulatory framework for the issuance of sukuks and debt instruments by closed-ended real estate traded funds, which aims to enable investment funds to offer all types of sukuks and debt instruments, and to open the way for investment funds to find sources of financing other than banks and companies. Finance.
Abdullah bin Ghannam confirmed that the Authority seeks to develop the regulatory requirements for investment funds, as the Authority works to provide the possibility of establishing new funds with more flexible structures for investors.
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.” In line with the goals of the Kingdom’s Vision 2030.
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