A Closer Look at Saudi Financial Markets: Trends & Opportunities

The asset management, IPO, and fintech sectors are experiencing record growth, with private equity investments and fintech innovations reshaping the landscape.

By the end of Q2 2025, Saudi Arabia stood among the fastest-growing globally, with market capitalization reaching $2.4 trillion. A sweeping wave of regulatory reforms has made the Kingdom one of the most attractive and stable markets for long-term global investment, prompting companies and investors to set up a business in Saudi Arabia.

The profound digital transformation occurring across the financial sector is matching the pace of regulatory overhauls as the country moves toward a knowledge-based, financially inclusive economy. Highlighted below are some of the underlying forces shaping the future of Saudi financial markets.

Asset Management Industry: Engine for Sustainable Growth

Private markets have grown more inclusive and competitive over the years, with increasing allocations toward private assets such as retail real estate investment trusts (REITs) and other retail and institutional products.

The growth of Saudi Arabia’s asset management industry is setting the stage for the private equity market’s next phase of expansion and marks a strategic shift toward long-term investment in high-priority sectors of the economy.

In terms of value, the industry is on track to surpass $400 billion by 2026, reaffirming the Kingdom’s dominance as the largest financial market in the GCC region.

This is part of a wider market movement, as foreign investors show a growing appetite to diversify portfolios and pursue higher returns from Saudi private financial markets. In fact, the industry has been on a rapid path toward consolidation in recent years—growing by around 12% annually from 2015 to 2024—with total assets under management (AUMs) reaching nearly $295 billion by the first quarter of 2025. Going forward, AUMs are expected to continue rising steadily, driven by ongoing regulatory reforms and the growth of both debt and equity markets.

Institutional-scale asset managers and investors are diverting their attention towards Saudi, forming strategic alliances with local counterparts to diversify revenues and achieve more scale. In that sense, strategic partnerships and synergy are becoming the hallmark of the industry’s transition, proving its global competitiveness and its alignment with international market developments.

For context, the Public Investment Fund (PIF) has been forming strategic partnerships with leading global asset managers, including BlackRock and Franklin Templeton, representing roughly $12 billion in potential inflows.

Supportive policies and forward-looking regulations are fostering a supportive environment for the Saudi financial markets.

A major reform includes allowing foreigners to own a majority stake in local companies by easing the rules that previously capped foreign ownership of listed firms at 49%.

As global investors seek growth opportunities and aim to maintain strong market share, expanding geographically within Saudi Arabia remains one effective strategy.

Supported by robust growth in local capital markets and regulators’ efforts to enhance the sector’s appeal, the expansion of Saudi financial markets reflects shifting macroeconomic trends and a resilient economy that provides a buffer against market turbulence.

Saudi IPO Market Tops Regionally as Private Equity Growth Continues

Another remarkable illustration of the private equity (PE) market’s expansion is Saudi Arabia’s continued lead as the largest IPO market in the region.

The IPO market has seen rapid acceleration. In the first half of 2025, six Saudi companies raised a combined $2.8 billion through initial public offerings on the main Tadawul exchange. The standout listing was that of low-cost carrier flynas, which raised SAR 4.1 billion ($1.1 billion), marking one of the region’s largest aviation IPOs.

This surge in listings reflects the Kingdom’s broader financial reforms aimed at boosting market liquidity and investor confidence. The Capital Market Authority has introduced new frameworks—including regulations for Special Purpose Acquisition Companies (SPACs)—to expand funding avenues and enhance private-sector participation.

Momentum carried into Q3 2025, with Saudi Arabia once again leading the region’s IPO market with eight listings accounting for a combined $637 million. This occurs in tandem with the country’s rise as the base of a growing pipeline of startups and unicorns, as it continues to cultivate a thriving IT sector.

Saudi Arabia’s Digital Drive and Fintech Surge Draw International Players

The private sector has played a crucial role in driving the growth of Saudi financial markets, providing the conditions needed for fintech companies to innovate and expand their digital offerings.

Generally speaking, fintech is becoming a central pillar of the Kingdom’s economic diversification efforts, mirroring the broader transformation of its financial services sector. The number of fintech firms has grown from 14 in 2020 to 261 in 2025, creating over 11,000 jobs and surpassing Vision 2030’s initial targets. The goal is to reach 525 fintech companies by 2030.

This positive outlook is also reflected in the venture capital investment space. As much as $860 million was invested in fintech during the first half of 2025, accounting for 56% of all MENA VC capital. Emerging segments such as embedded finance and Buy Now, Pay Later (BNPL) solutions continue to expand, driven by the Kingdom’s young, tech-savvy population.

Green fintech is also gaining traction, aligning with the Kingdom’s sustainability and ESG objectives. These initiatives are making Saudi Arabia an increasingly attractive destination for investment in renewable energy and environmentally responsible projects.

Meanwhile, Regtech is simplifying compliance with SAMA and CMA regulations, helping companies operate efficiently within Saudi Arabia’s evolving financial landscape.

Operating at the Intersection of Fintech and Regtech is TeamSec, recognized as the first cloud-based platform to simplify and control the securitization process in its home market of Turkey.

With support from AstroLabs, the Gulf’s leading business expansion platform, TeamSec has recently expanded into Saudi Arabia’s dynamic financial ecosystem.

As part of its growth strategy, TeamSec offers securitization solutions that enable firms to transform illiquid assets into investable securities, improving balance-sheet efficiency and supporting broader market growth. The company is also adapting its products to local needs, including residential mortgage-backed securities (RMBS) and Sharia-compliant securitization instruments such as sukuk, aligning with Saudi Arabia’s growing prominence in Islamic finance.