KSA Robo Advisory in Wealth Management Market Outlook to 2026F
Driven by influx of AI technology along with growing demand for financial inclusion and affordability in financial planning
Region:Middle East
Author(s):Gagan Sawhney
Product Code:KR1256
November 2022
62
About the Report
The report provides a comprehensive analysis of the potential of Robo advisory industry in Saudi Arabia. The report covers an overview and genesis of the industry, market size in terms of fleet Size.
Its market segmentations include by Type, by End-User, by Age-Group, by Region; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.
Market Overview:
According to Ken Research estimates, the KSA Robo Advisory Market expanded at a CAGR of 607% in between 2019 and 2022 on the basis of revenue generated. The market faced rapid growth in the year of 2020 owing to Covid and reflected high growth in 2022 too but the growth is expected to normalize in the coming years. KSA Robo Advisory Market is estimated to grow at a positive CAGR of 52% in between 2022E and 2026F.
- Banks are expected to take the leadin robo-advisory industry, banks would do well due to cost-effectiveness, trust, ease of movement of money, captive base & larger credibility to give their customer an easy, simple and much better experience.
- Competition is fierce among KSA-based Wealth Management firms, they face multiple challenges. For instance, clients are more interested in sustainable & ethical investments. Also, Wealth Managers must be more transparent in disclosing fee structure for various investment products.
Key Trends by Market Segment:
By Type: The Robo Advisory market is dominated by hybrid robo advisors.A major selling point for most hybrid Robo-Advisors are their low fees. Fina Maze, for example, charges an annual fee on investments made through the platform, but not on the cash balance. This does not exceed 1% per cent per year. However, CBD Investr, a Pure Robo Advisory charge more than 1% as management fees.
By End-User: In Middle-East part of the world, High Net Worth Individuals prefer personal advisory so most of their wealth is managed by wealth advisors and they just experiment small amount of their wealth with Robo-advisory platforms.
Competitive Landscape
Future Outlook
The KSA Robo Advisory Market witnessed significant growth during the period 2019-2021, owing to With Digital Transformation, Emergence of New Players and some Government Initiatives.
Growth rate of robo advisory market is going to increase over the period as it’s a low-cost alternative to traditional investing, eliminates the human labor, lower overheads with little-to-no minimum investments required and increasing market penetration rates.
Scope of the Report
|
By Type |
Hybrid Robo Advisors Pure Robo Advisors |
|
By Age-Group |
19-28 years 29-38 years 39-45 years 45+ years |
|
By Region |
Riyadh Makkah Eastern Region Others |
|
By End User |
Retail Investor High Net Worth Individuals |
Products
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report
- Government and Institutions
- New Market Entrants
- Investors
- Wealth Management Companies
- Robo-Advisory Companies
- Investment Banks
- Investors
Time Period Captured in the Report
- Historical Period: 2019-2021
- Base Period: 2022
- Forecast Period: 2022-2026F
Companies
Major Players Mentioned in the Report
- Abyan Capital
- Derayah Capital
- Tamra Capital
- Haseed
Table of Contents
1. Executive Summary
1.1 How is Robo-Advisory in Wealth Management Positioned in KSA?
2. Country Overview of KSA Robo-Advisory in Wealth Management Market
2.1 KSA Country Overview
2.2 KSA Population Analysis
3. KSA Wealth Management Market Overview
3.1 Market Sizing of Wealth Management Market
3.1 Robo-Advisory in Wealth Management Market Contribution
3.1 Importance of Robo-Advisory in Wealth Management
4. KSA Robo-Advisory in Wealth Management Market Overview and Genesis
4.1 Ecosystem of KSA Robo-Advisory in Wealth Management Market
4.2 Timeline of Major Players in KSA Robo-Advisory in Wealth Management Market
4.3 Business Cycle and Genesis of KSA Robo-Advisory in Wealth Management Market
4.4 Value Chain Analysis/ Existing Business Model
5. KSA Robo-Advisory in Wealth Management Market Size
5.1 KSA Robo-Advisory in Wealth Management Market Size, 2019-2021
6. KSA Robo-Advisory in Wealth Management Market Segmentation
6.1 KSA Robo-Advisory in Wealth Management Market Segmentation by Type and End User, 2021
6.2 KSA Robo-Advisory in Wealth Management Market Segmentation by Region, 2021
7. End User Analysis of Robo-Advisory in Wealth Management Market in KSA
7.1 Identifying TAM, SAM and SOM
7.2 End User Profiling by Age of Customer, 2021
7.3 Decision Making Parameters of End Users in KSA Robo-Advisory in Wealth Management Market
7.4 Customer Pain Points in KSA Robo-Advisory in Wealth Management Market
7.5 Key Factors Influencing Robo-Advisory Services Purchasing Decisions and Cost Components
8. Industry Analysis
8.1 Porter’s Five Forces Analysis of KSA Robo-Advisory in Wealth Management Market
8.2 Growth Drivers of KSA Robo-Advisory in Wealth Management Market
8.3 Trends and Developments in KSA Robo-Advisory in Wealth Management Market
8.4 Issues and Challenges in KSA Robo-Advisory in Wealth Management Market
8.5 Government Rules and Regulations in KSA Robo Advisory in Wealth Management Market
8.6 Covid-19 Impact on KSA Robo Advisory in Wealth Management Market
9. Competition Scenario
9.1 Competition scenario of key players based on Revenue, 2021
9.2 Cross Comparison of Major Players in KSA Robo-Advisory in Wealth Management Market
10. Outlook and Future Projections for KSA Robo-Advisory in Wealth Management Market
10.1 KSA Robo-Advisory in Wealth Management Market Size, 2021-2026F
10.2 KSA Robo-Advisory in Wealth Management Market Segmentation by Type and End-User, 2026F
10.3 KSA Robo-Advisory in Wealth Management Market Segmentation by Region, 2026F
10.4 Future Trends and the Way Forward
11. Analyst Recommendations
12. Research Methodology
12.1 Market Definitions
12.2 Abbreviations Used
12.3 Market Sizing Approach
12.4 Consolidated Research Approach
12.5 Sample Size Inclusion
12.6 Research Limitations and Future Conclusion
Disclaimer
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Research Methodology
Step 1: Identifying Key Variables:
Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.
Step 2: Market Building:
Collating statistics on used car and new car over the years, penetration of car finance and down payment ratio to compute overall credit disbursed for cars. We will also review central bank statistics to understand credit disbursed and outstanding amount which can ensure accuracy behind the data points shared.
Step 3: Validating and Finalizing:
The research team has then conducted computer assisted telephonic interviews (CATIs) with the management of the companies (C-level executives, Business Development head, Regional Head, Operations Manager, Area Sales Manager, & others) to get their insights on the market and to seek justification to the hypothesis framed by the team.
Step 4: Research output:
Secondary data sources include the analysis of existing industry factors, obtained from company reports and from magazines, journals and online articles. The secondary data sources are used to form the initial perception and contention on several forces playing their role in determining the future growth in the industry. Our team used a bottom to top approach in KSA's Robo Advisory Market Size calculation
Frequently Asked Questions
01 What is the Study Period of this Market Report?
The KSA Robo Advisory Market is covered from 2019–2026F in this report, including a forecast for 2022F-2026F.
02 What is the Future Growth Rate of the KSA Robo Advisory Market?
The KSA Robo Advisory Market is expected to witness a CAGR of ~52% over the next five years.
03 What are the Key Factors Driving the KSA Robo Advisory Market?
Increasing Digitalization, requirement of minimal investment, change in investor preference are likely to fuel the growth in the KSA Robo Advisory market.
04 Which is the largest region for the KSA Robo Advisory Market?
Riyadh as the largest region for KSA Robo Advisory Market in 2021.
05 Who are the Key Players in the KSA Robo Advisory Market?
Abyan Capital, Derayah Capital, Tamra Capital and Haseed are the major player in KSA Robo Advisory market.
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