Riyadh, Saudi Arabia — The total assets under management (AUM) held by capital market institutions licensed by Saudi Arabia’s Capital Market Authority (CMA) rose 7 percent, or SAR 53 billion ($14 billion), quarter-on-quarter (QoQ) to SAR 823.6 billion in Q2 2023, according to the authority’s data.
The total AUM held by licensed capital market institutions in Q2 2023 are the largest in years, according to Argaam.
Dom Capital led the way with a 100 percent increase in AUM in Q2 2023. Sidra Capital followed with a 195 percent rise.
On the other hand, Alkhizanah Capital reported the steepest decline in AUM, with a 100 percent fall. Impact46 came in second with a 69 percent fall.
SNB Capital topped the list of capital market institutions in terms of AUM, with about SAR 271.2 billion during the second quarter of this year, representing 33 percent of the total AUM value. It was followed by Riyad Capital, with nearly SAR 84 billion, Argaam reported.
GCC asset management market $500bn by 2026
The GCC asset management market is a rapidly growing market, with assets under management (AUM) projected to reach nearly $500 billion in onshore assets by 2026, a leap from $400 billion at the end of 2022.
The growth of the GCC asset management market is being driven by a number of factors, including strong capital inflows from both domestic and foreign investors. The strong capital flows are, in turn, driven by high oil prices, economic diversification efforts and the development of the financial sector.
The IMF estimated in 2022 that GCC countries together held a trade surplus of approximately $350 billion. Wealthy individuals are also attracted to the region, with the UAE previously projected to attract the most millionaires worldwide in 2022.
Additionally, an increased appetite for IPOs saw the Middle East raise a record amount in proceeds, exceeding $20 billion in 2022.