Saudi Arabia’s financial wealth to grow by 4.8% annually, reaching USD 1.6trln by 2026

Saudi Arabia’s financial wealth to grow by 4.8% annually, reaching USD 1.6trln by 2026

- Equities & investment funds are the largest asset class in KSA and makeup 46% of total personal wealth in 2021, carrying the fastest expected growth estimated at a 6.9% Compound Annual Growth Rate.

Riyadh:The Kingdom of Saudi Arabia (KSA)’s financial wealth will experience a sturdy Compound Annual Growth Rate (CAGR) of 4.8% in new wealth, rising from USD 1.3 trillion to a high USD 1.6 trillion from 2021 - 2026, according to a new report by Boston Consulting Group (BCG).

The report titled, Global Wealth 2022: Standing Still Is Not an Option, shows equities and investment funds in the Kingdom make up the largest asset class at 46% of total personal wealth in 2021 and are by 2026 expected to grow the fastest with a CAGR of 6.9%. Whereas currency and deposits represent the second largest class at 44% of total personal wealth in 2021, bonds make up a mere 9%. It is expected life insurance and pensions will become the third largest asset class over the next five years.

“We see the Middle East and Africa financial wealth growing year after year, with Saudi Arabia in particular, excelling despite a tremulous global market. In fact, the Kingdom represented 17.6% of the