Saudi Arabia Mutual Fund Market Opportunity Outlook 2022

  • No. of Pages: 105
  • Publish Date: April-2017
  • Category: Banking, Financial Services and Insurance
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“Saudi Arabia Mutual Fund Market Opportunity Outlook 2022” report highlights the current transformation in the mutual fund market in Saudi Arabia. Currently the total assets under management by fund managers in Saudi Arabia are valued at more than US$ 23 Billion. Majority of the funds have allocated in domestic assets valued at US$ 19 Billion and foreign assets accounts for close to US$ 4 Billion. This report gives comprehensive insight on the mutual fund assets allocation by fund type, open and close ended schemes, number of subscribers and operational schemes, open and closed ended funds, Sharia Funds and the current regulatory landscape in the Saudi Arabia.
The concept of mutual fund was first familiarized in Saudi financial industry by National Commercial Bank in 1979 through its open-ended Al-Ahli Short Term Dollar Fund. The program was aimed at smaller investors, particularly small workers and thus, experienced a fast success due to lesser service charge, easy entry and improvement.  Over the years, the public interest in the investment policy has risen to a great extent.
History has shown a changing trend of mutual fund market in Saudi finance industry. Saudi investors moved out of mutual fund market segment to try direct investing in the stock market during 2006. However, they reverted back to the mutual funds in very next year. The reasons behind this switch is considered to be high rise in Saudi share prices as compared to international equity market, rising demand of Islamic funds and growing number of expertise for independent management over time amongst Saudi banks. History also narrates the demand of pension by small workers whether in private or government sector in early times but presently, increasing number of Saudis are willing to invest in these funds for their retirement hedging.
Saudi Arabia mutual fund market has shown a tremendous rise in the market potential and financial benefits to its citizens. The kingdom has experienced significant changes in the total number of mutual fund programs and thus, the industry has evolved as a secure financial investment option. In 2016, Saudi accounts for more than 270 mutual funds managed by more than 40 fund managers. More than 60% of the mutual funds schemes operating in Saudi Arabia are Sharia compliant.
The growth of mutual funds in Saudi Arabia has been impressive over a short period of time. Initially, the focus was on private bank investors, but later all Saudi banks started paying attention to other sectors as well including middle income and top-tier expatriates. Soon, competition amongst banks has become more serious and started developing in-house expertise for managing funds whereas, other started strategic alliances with international investment agents for designing new investment programs for domestic clients.
The prominent Islamic institutions have also started to widen their coverage across financial instruments to serve the more sophisticated and ethical approach to investment programs for the citizens of the state. In addition to financial deposits and basic savings and current accounts, Islamic institutions implemented several investment schemes which are targeted to manage the savings of the citizens related to the Sharia law.
“Saudi Arabia Mutual Fund Market Opportunity Outlook 2022” Report Highlights:
  • Financial Sector and Mutual Fund Market Overview
  • Mutual Fund Program and Managers
  • Mutual Fund Asset Allocation
  • Saudi Arabia: Special Purpose Vehicles
  • Bonds Market: Sukuks vs. Conventional Bonds
  • Mutual Fund Market Regulatory Authorities
  • Mutual Fund Market Future Forecasts
Mutual Fund Market Competitive Landscape

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