Saudi financial wealth reaches $1.25tn as asset mix shifts, BCG says

17/12/2025 03:36 AST

Saudi Arabia's financial wealth rose to $1.25 trillion in 2024, up 4.4 percent from a year earlier, underscoring steady balance-sheet expansion as the Kingdom's investor base becomes more diversified, a new analysis showed.

Financial assets increased from $1.2 trillion in 2023, while total net wealth climbed to a record $3.7 trillion by the end of 2024, Boston Consulting Group said in its latest Global Wealth Report.

The analysis added that real assets represent the largest component of Saudi Arabia's overall wealth and are expected to reach $2.94 trillion by 2029, marking a compound annual growth rate of 1.3 percent.

Earlier this month, the World Bank underscored Saudi Arabia's financial resilience and upgraded its 2025 economic growth forecast for the Kingdom to 3.8 percent from an earlier estimate of 3.2 percent, citing renewed momentum in both oil and non-oil sectors.

In October, the International Monetary Fund also raised its economic growth forecast for the Kingdom to 4 percent for both 2025 and 2026.

Bhavya Kumar, managing director and partner at BCG, said: "Saudi Arabia's wealth ecosystem is at an inflection point. With financial wealth reaching $1.25 trillion and real assets maintaining stability at $2.76 trillion, we're witnessing the maturation of a sophisticated investor base."

BCG also said Saudi Arabia's liabilities increased by 6.8 percent to $307 billion in 2024, helping to keep the Kingdom's overall wealth growth balanced.

The Kingdom's investable wealth is projected to grow from $1.04 trillion in 2024 to $1.31 trillion by 2029, representing a compound annual growth rate of 4.7 percent.

By contrast, non-investable wealth is expected to expand at a robust 5.3 percent CAGR, reflecting continued economic development and infrastructure investment.

According to the report, equities and currency and deposits were the dominant asset classes in 2024, valued at $339 billion and $300 billion, respectively.

BCG said equities are expected to grow to $398 billion by 2029, while currency and deposits are projected to reach $414 billion.

Bonds, though relatively small at $9 billion in 2024, are expected to rise to $13 billion by 2029, representing a CAGR of 7.2 percent.

Life insurance and pensions were valued at $99 billion in 2024 and are projected to reach $140 billion by 2029.

"The 6.6 percent projected growth in currency and deposits signals increasing liquidity preferences, while the underdeveloped life insurance and pensions sector - growing at 7.1 percent annually - represents a massive opportunity for financial services providers who can adapt their offerings to meet the evolving needs of Saudi investors," said Kumar.

The report noted that while wealth continues to grow steadily in Saudi Arabia, the drivers of that expansion are shifting, with significant implications for firms operating in the sector.

BCG said many firms have traditionally leaned on market performance, mergers and acquisitions, and adviser hiring.

"Saudi Arabia's wealth management landscape is experiencing unprecedented transformation. The key to success today is no longer merely about gaining market exposure or hiring senior bankers; it's about fostering internal growth," said Lukasz Rey, managing director and partner at BCG.

Rey added: "Companies that strategically prioritize adviser development, strengthen their brand identity, and embrace next-generation client strategies are outpacing their competitors - not only in revenue generation but also in achieving higher valuation multiples."

Arab News