SAUDI Arabia’s asset management industry remained resilient during the Iran conflict, with assets under management surpassing $340 billion in the first quarter of 2026 and projected to exceed $400bn by 2027, Fitch Ratings said, reports the Arab News.
The rating agency attributed the sector’s growth to regulatory easing, rising participation from domestic and foreign investors, and an expanding product base across mutual funds, sukuk, exchange-traded funds, and private credit.
These factors have helped cushion the market against geopolitical volatility while sustaining inflows.
The growth comes as Saudi Arabia, under its Financial Sector Development Programme, seeks to diversify income sources, boost savings, expand investment and financing opportunities, and strengthen its financial institutions, capital markets, and fintech sector.
Industry AUM exceeded $340bn at the end of the first quarter, up 17 per cent year on year and 4pc quarter on quarter. Fitch estimates the sector at about 26pc of GDP, up from 23pc a year earlier.
Saudi bank-affiliated asset managers continued to dominate the industry, accounting for roughly 60pc of total revenue.
“International and regional capital market institutions held a larger share of industry revenue at about 20pc in the first quarter of 2026,” the agency said in its non-rating action commentary report.
Private funds remained the largest segment, representing about 54pc of assets under management, followed by discretionary portfolio management at 28pc and public funds at 18pc.
Private fund assets grew 26pc year on year and 6pc quarter on quarter at the end of the first three months of 2026, with allocations concentrated mainly in real estate at 54pc and equities at 30pc.
Assets under discretionary portfolio management declined 0.4pc year on year and 0.5pc quarter on quarter, with most assets concentrated in local equities.
Public funds’ AUM increased 20pc year on year and 5pc quarter on quarter, primarily driven by money market funds, while the remainder was allocated across equities, debt instruments, real estate investment trusts, and other assets.
Fitch said government-led reforms are expected to support the expansion of Islamic funds as the Capital Market Authority advances measures to improve the efficiency of securities activities.
Proposed amendments include a 60pc reduction in the minimum capital requirement for custody services, alongside broader efforts to deepen market accessibility, including opening capital markets to foreign investors.
“It also approved the establishment of simplified investment funds and the regulation of robo-advisory services. Investment options are increasing with new IPOs and listings, sukuk and bonds, ETFs and private credit funds, among others,” the report stated.
The Public Investment Fund has also signed additional memorandums of understanding with global asset managers, further strengthening institutional participation and fund anchoring in the market.
Fitch noted that a recent US-Iran agreement could help improve conditions in capital markets by easing some geopolitical, credit, and broader market risks. However, it cautioned that the deal remains uncertain, with the possibility of delays, non-implementation, or a return to heightened instability.
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