Assets managed via robo-advisors, crowdfunding see strong growth: CMA official

Abdullah Binghannam, Deputy for Finance and Investment at the Capital Market Authority (CMA), said that the value of assets managed through robo-advisory platforms exceeded SAR 4.3 billion by the end of H1 2025, marking a 90.29% year-on-year (YoY) growth in Q2 2025.

 

In an interview with Argaam on the sidelines of the Money 20/20 Middle East Conference in Riyadh, the official said that the number of registered investment portfolios surpassed 400,000, with 99.70% owned by individual investors.

 

Binghannam clarified that more than half of these investors are under 36 years, with an average investment of about SAR 10,800 per portfolio, reflecting the expansion of the young investor base.

 

He also noted that crowdfunding and debt instruments recorded strong momentum, with total funding through these platforms reaching around SAR 8.4 billion by the end of Q2 2025, an increase of 125.78% YoY.

 

Binghannam said that the average value of issuances reached about SAR 7.1 million, benefiting more than 1,174 companies across 11 sectors. The IT sector accounted for 35.2% of the total companies, while the number of investment applications submitted through these platforms reached about 776,000, of which 85.6% were from individuals.

 

The official also highlighted that CMA established the FinTech Lab in 2018 as a regulatory sandbox, enabling companies to test innovative products and services within defined controls and timeframes — balancing innovation encouragement with risk management.

 

By the end of H1 2025, the CMA issued around 68 experimental licenses, including 50 active licenses, enabling seven business models and aiming to welcome and empower more models and innovation in the capital market, he added.

 

Regarding the FinTech Lab, Binghannam said the idea behind the initiative is to receive applications from entrepreneurs proposing new services in the market, study and develop them, and grant experimental permits before allowing them to start actual operations, turning these ideas into reality.

He added that these experiments have produced solutions and concepts that surpassed the authority’s expectations, underscoring the continuous need to support and enhance this field.

 

Binghannam stated that there are abundant opportunities to provide services to various categories of investors who have strategic goals and specific needs in the capital market.

 

These opportunities depend largely on expanding the use of knowledge to reach a broader segment of investors, after key financial services were historically concentrated on a narrow segment of wealthy investors and institutions, he added.

 

Binghannam also stressed that technology has completely changed the landscape, making it possible to broaden access to knowledge for a larger group of investors and entrepreneurs, turning the concept of “democratizing financial services” into a tangible reality — which explains the rapid growth and spread of financial technology.

 

As regards tokenization and security tokens, the official indicated that tokenization represents one of the most significant transformations in global capital markets going forward, adding that the CMA has started receiving licensing applications to test business models related to security tokens through the FinTech Lab.

 

He added that the regulator is currently working on the Open Finance initiative in the capital market, which will enable secure data sharing and allow the development of innovative financial products such as embedded finance and tailored services for individuals, enhancing competitiveness and improving the quality and diversity of financial services.

 

Binghannam concluded by emphasizing that developing the market has become essential to effectively protect investors.

 

“Traditional methods are no longer sufficient to keep pace with the rapid developments in financial products; innovation must be enabled within a safe environment to provide more options for investors and entrepreneurs,” he stated.