Market Insights Financial Wealth Management

Financial Advisory - Saudi Arabia

Saudi Arabia

In Saudi Arabia, the Financial Advisory market is expected to witness a significant increase in Assets under Management.
It is projected that by 2024, the Assets under Management in this market will reach a staggering US$297.10bn.
This growth is expected to continue with an annual growth rate (CAGR 2024-2028) of 5.59%.
As a result, the market volume is estimated to reach US$369.30bn by 2028.
In Saudi Arabia, the demand for financial advisory services is growing rapidly due to the country's economic diversification efforts and increasing interest in wealth management.

Key regions: United States, Singapore, Europe, Switzerland, Canada

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Analyst Opinion

The Financial Advisory market in Saudi Arabia is experiencing significant growth and development. Customer preferences are shifting towards seeking professional financial advice to help them navigate the complex and ever-changing financial landscape. This trend is driven by several factors including increased awareness of the importance of financial planning, growing disposable incomes, and a desire for personalized investment strategies.

Customer preferences: Customers in Saudi Arabia are increasingly seeking the services of financial advisors to help them make informed decisions about their finances. This is driven by a growing awareness of the importance of financial planning and the desire to achieve long-term financial goals. Additionally, the increasing disposable incomes in the country have provided individuals with more financial resources to invest and manage.

Trends in the market: One of the key trends in the Financial Advisory market in Saudi Arabia is the rise of robo-advisors. These digital platforms provide automated investment advice and portfolio management services, making it easier and more accessible for individuals to invest their money. Robo-advisors are particularly popular among younger investors who are comfortable with technology and prefer a more streamlined and cost-effective approach to financial advice. Another trend in the market is the increasing demand for Sharia-compliant financial advisory services. Islamic finance is an important aspect of the Saudi Arabian economy, and many individuals seek financial advice that aligns with their religious beliefs. Sharia-compliant financial advisors help clients invest in accordance with Islamic principles, ensuring that their investments are ethically and morally sound.

Local special circumstances: Saudi Arabia has a unique financial landscape due to its strong reliance on oil revenues. The government has been implementing economic reforms to diversify the economy and reduce its dependence on oil. This has created new investment opportunities and increased the demand for financial advisory services. Additionally, the country has a young and growing population, which presents a significant market for financial advisors to cater to.

Underlying macroeconomic factors: The Financial Advisory market in Saudi Arabia is influenced by several macroeconomic factors. The country's Vision 2030 initiative, which aims to transform and diversify the economy, has led to increased investment opportunities and the need for financial advice. Additionally, the low interest rate environment in the country has encouraged individuals to seek alternative investment options, driving the demand for financial advisory services. In conclusion, the Financial Advisory market in Saudi Arabia is experiencing growth and development as customer preferences shift towards seeking professional financial advice. The rise of robo-advisors and the demand for Sharia-compliant services are key trends in the market. The unique local circumstances, such as the economic reforms and the young population, contribute to the growth of the market. Overall, the Financial Advisory market in Saudi Arabia is poised for further expansion as individuals recognize the importance of financial planning and seek personalized investment strategies.

Methodology

Data coverage:

The data encompasses B2C enterprises. The figures are based on gross revenues, assets under management, and user & advisor data of relevant services and products offered within the Wealth Management market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research activities (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as: GDP, gross national income (GNI), consumer spending, total investment (% of GDP), high income (% of population), and number of high-net-worth individuals (HNWI). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).