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Derayah Financial Achieves Remarkable Growth in Saudi Brokerage and Asset Management
Derayah Financial's assets under management reach SR17 billion, marking a 70% year-on-year increase, as Saudi Arabia's asset management industry shows promising growth.
Saudi investment firm Derayah Financial reported a substantial increase in its assets under management (AUM), which reached SR17 billion ($4.53 billion) in 2024. This marks a 70 percent year-on-year growth, positioning the company among the leading independent firms in Saudi brokerage revenues with the third-largest market share, as stated by CEO Mohammed Al-Shammasi during the Capital Markets Forum 2025.
According to a report by Fitch Ratings released in October, Saudi Arabia's asset management sector is anticipated to grow in the latter half of 2024 and into 2025, with AUM projected to increase by 13.5 percent year over year, surpassing $250 billion by mid-2024. The Kingdom's asset management industry stands as the largest in the Gulf Cooperation Council (GCC), the fifth-largest in the Organisation of Islamic Cooperation (OIC), and the second-largest public Islamic funds market globally.
Al-Shammasi highlighted the overall market's growth trajectory, indicating that retail and digital brokerage segments have historically expanded at a compound annual growth rate (CAGR) of about 9 percent, while asset management has experienced a consistent growth rate of approximately 14 percent annually.
The CEO also drew attention to Derayah's recent initial public offering (IPO), which was oversubscribed by a remarkable 162 times, reflecting the firm's robust market position and investor confidence.
The IPO allows shareholders to sell 20 percent of the company's shares in a secondary transaction, with 90 percent allocated to corporates and institutions and 10 percent to retail investors.
Al-Shammasi expressed optimism regarding the credibility that the IPO would bring to Derayah, stating that it might encourage more financial technology (fintech) companies to consider listing on the Saudi stock exchange.
He noted the strong demand for Derayah's IPO, with interest from investors across Asia, Europe, and the United States.
Further, the CEO affirmed that Derayah is financially stable, boasting a debt-free balance sheet and a history of generous dividend distributions, indicating no immediate need for new capital to sustain its growth strategy.
Al-Shammasi conveyed confidence in the favorable environment for raising capital in the Kingdom, stating his willingness to tap the market if necessary.
Additionally, Derayah has formed a partnership with Alpaca, a significant player in the international brokerage space, to enhance support for the burgeoning local fintech sector.
This collaboration aims to provide a localized version of Alpaca’s services for fintechs operating in Saudi Arabia while also facilitating international investors seeking access to the local market.
The Capital Markets Forum 2025, organized by the Saudi Tadawul Group, aims to unite policymakers, business leaders, and industry experts to discuss the evolving trends that are shaping the Kingdom's capital markets, reinforcing Saudi Arabia's position as a key player within the global financial ecosystem.
According to a report by Fitch Ratings released in October, Saudi Arabia's asset management sector is anticipated to grow in the latter half of 2024 and into 2025, with AUM projected to increase by 13.5 percent year over year, surpassing $250 billion by mid-2024. The Kingdom's asset management industry stands as the largest in the Gulf Cooperation Council (GCC), the fifth-largest in the Organisation of Islamic Cooperation (OIC), and the second-largest public Islamic funds market globally.
Al-Shammasi highlighted the overall market's growth trajectory, indicating that retail and digital brokerage segments have historically expanded at a compound annual growth rate (CAGR) of about 9 percent, while asset management has experienced a consistent growth rate of approximately 14 percent annually.
The CEO also drew attention to Derayah's recent initial public offering (IPO), which was oversubscribed by a remarkable 162 times, reflecting the firm's robust market position and investor confidence.
The IPO allows shareholders to sell 20 percent of the company's shares in a secondary transaction, with 90 percent allocated to corporates and institutions and 10 percent to retail investors.
Al-Shammasi expressed optimism regarding the credibility that the IPO would bring to Derayah, stating that it might encourage more financial technology (fintech) companies to consider listing on the Saudi stock exchange.
He noted the strong demand for Derayah's IPO, with interest from investors across Asia, Europe, and the United States.
Further, the CEO affirmed that Derayah is financially stable, boasting a debt-free balance sheet and a history of generous dividend distributions, indicating no immediate need for new capital to sustain its growth strategy.
Al-Shammasi conveyed confidence in the favorable environment for raising capital in the Kingdom, stating his willingness to tap the market if necessary.
Additionally, Derayah has formed a partnership with Alpaca, a significant player in the international brokerage space, to enhance support for the burgeoning local fintech sector.
This collaboration aims to provide a localized version of Alpaca’s services for fintechs operating in Saudi Arabia while also facilitating international investors seeking access to the local market.
The Capital Markets Forum 2025, organized by the Saudi Tadawul Group, aims to unite policymakers, business leaders, and industry experts to discuss the evolving trends that are shaping the Kingdom's capital markets, reinforcing Saudi Arabia's position as a key player within the global financial ecosystem.
