Assets managed via robo-advisors exceed SAR 4B, with 400,000 portfolios

The value of assets managed through robo-advisory services provided by licensed fintech companies and financial market institutions in Saudi Arabia rose to SAR 4.34 billion by the end of the second quarter of 2025.

According to a report issued by the Capital Market Authority (CMA), the total number of investment portfolios managed through robo-advisory platforms exceeded 400,000 during the period.

Robo-advisory service is defined as the use of algorithms and advanced technological tools by licensed fintech and financial market institutions to manage clients’ investments according to predetermined investment strategies, with no or limited human intervention.

*Starting from Q1 2024, the data includes all licensed providers of robo-advisory services, both fintech companies and financial market institutions.

The total number of investors benefiting from fintech companies’ services reached about 452,000 clients, with retail clients accounting for around 96% (433,000 clients). The number of qualified clients stood at approximately 18,500, while institutional clients totaled 90.

The number of licensed fintech companies authorized to provide robo-advisory services in Saudi Arabia stands at 13, licensed by the CMA between 2021 and 2025, as follows:

The CMA recently invited stakeholders and market participants to share their views on a draft proposal to allow licensed financial market institutions to offer robo-advisory services.

According to the CMA, the proposed project aims to enable licensed financial market institutions engaged in investment management or fund management to provide robo-advisory services by using algorithms and modern technologies to manage clients’ investments based on predetermined investment strategies.

It is worth noting that, according to the glossary of terms used in the Capital Market Authority’s regulations and rules, the terms “institutional client,” “qualified client,” and “retail client” are defined as follows:

Institutional Client

This category includes the Government of Saudi Arabia or any international organization recognized by the CMA. It also covers companies that are wholly owned by the state or any government entity, either directly or through a portfolio managed by a licensed financial market institution authorized to engage in asset management.

It also includes any legal entity acting on its own behalf, provided that it meets one of the following conditions. The entity must be a company that owns, or is part of a group that owns, net assets exceeding SAR 50 million; an unregistered partnership, general partnership, or other entity with net assets exceeding SAR 50 million; a person serving as a board member, officer, or employee of a legal entity and responsible for its securities activities; a company wholly owned by another legal entity; or an investment fund.

Qualified Client

An individual or legal entity that meets specific financial or professional criteria, such as conducting securities transactions totaling at least SAR 40 million over the past year; having net assets of no less than SAR 5 million; or working for at least three years in an investment-related financial sector role.

The criteria also include holding an internationally recognized professional certification in the securities business; having a general securities qualification certified by the CMA, with an annual income exceeding SAR 600,000 in the past two years; or being a client of a licensed asset management institution.

Retail Client

Any client who does not qualify as an institutional or qualified client.