Riyadh, January 1, 2025 – The Saudi financial market has witnessed remarkable growth in the value of public investment fund assets, both domestic and foreign, according to recent data from the Capital Market Authority's quarterly statistical bulletin for 2024. As of the end of the third quarter (Q3) of 2024, the value of these assets surged by 37% year-on-year, marking an increase of nearly SAR43 billion. The total value of the assets reached SAR160.087 billion, compared to SAR117.117 billion during the same period in 2023, reflecting robust performance across various sectors of the economy.
On a quarterly basis, the public investment fund assets grew by 10.4%, equivalent to an estimated SAR15.120 billion, compared to SAR144.967 billion at the end of the second quarter (Q2) of the same year. This quarterly growth highlights the continued strength of Saudi Arabia's financial market, driven by favorable investment conditions and strategic initiatives aimed at bolstering the nation's financial sector.
One of the most striking developments is the significant increase in the number of subscribers to public investment funds. The total number of subscribers grew by an impressive 51%, with an additional 528,000 subscribers, bringing the total to 1,570,452 at the end of Q3 2024. This marks a sharp rise compared to the 1,042,484 subscribers recorded at the same time in 2023, showcasing the growing public confidence in Saudi investment funds and the expanding participation in the market.
The growth in public investment fund assets was primarily driven by a notable increase in domestic investment. Domestic assets grew by 42% year-on-year, adding SAR39.598 billion to reach a total of approximately SAR134.431 billion. These domestic assets now represent a dominant 84% of the total public investment fund assets, underscoring the continued strength of the local economy and the increasing appetite for domestic investment opportunities. On the other hand, foreign investment assets saw an annual growth of 15.1%, increasing by over SAR3 billion to reach SAR25.656 billion. While foreign assets account for 16% of the total asset value, this growth demonstrates the increasing interest from international investors in the Saudi market.
In terms of the number of funds, public investment funds saw a 10% increase annually, with the number of funds rising by 27 to reach a total of 310 funds. This expansion reflects the growing diversity of investment options available to subscribers, catering to a wide range of investor preferences and risk profiles.
The distribution of public investment fund assets across different investment types further highlights the evolving landscape of Saudi investments. The money market funds lead in value, with assets totaling SAR44.868 billion, representing 28% of the total assets. Following closely are equity funds, with assets valued at SAR34.767 billion, accounting for 27.3% of the total asset value. Real estate investment funds rank third, with SAR29.263 billion, making up 18.3% of the total assets, while debt instrument funds hold SAR22.236 billion, representing 14% of the total. This diversification underscores the breadth and stability of the public investment fund portfolio, offering a balanced approach to risk and return for investors.
The significant growth in both asset value and the number of subscribers to public investment funds signals a positive outlook for the Saudi financial market. It also reflects the effectiveness of Saudi Arabia's Vision 2030 initiatives, which are designed to transform the nation's economic landscape by enhancing its investment environment and encouraging broader participation in the financial sector. As the market continues to grow and evolve, public investment funds will likely play an increasingly vital role in shaping the future of Saudi Arabia's economy.