MENA Asset Management Survey 2012 - National Bank of Abu Dhabi

Saudi Arabia
property. Banks previously extended such loans against salary. This reform is in line with
authorities’ plans to build 500,000 new houses over the medium term.
In 2013, real GDP growth is forecast to slow to +4.6% as oil production growth is
expected to taper off with Saudi focus being more on oil price stability. The current
account surplus is expected to ease to 17.4% of GDP in line with our assumption of a
moderation in energy prices. The budget surplus is forecast to ease to 10% of GDP.
Industry Overview
Relentless decline in the number of subscribers
There were 279,654 subscribers (-6.8% y-o-y, -4.8% YTD) in 239 funds in Saudi
Arabia at end-2012Q3, according to data from the Saudi Arabian Monetary Agency
(SAMA). The number of subscribers has continued to fall relentlessly and was the lowest
since 2004. The number of mutual funds subscribers declined by 26,510 in 2011 and
14,251 in 9M2012.
Fund assets stood at US$ 24 billion (+5.4% y-o-y, +9.6% YTD) , of which US$ 5.14
billion were in foreign assets (+6.4% y-o-y, +9.2% YTD) and US$ 18.88 billion in
domestic assets (+5.1% y-o-y, +9.7% YTD). Fund assets were down by -13.2% in 2011
driven by a fall in foreign and domestic assets.