(FinTech Egypt – Zawya)
In a step that could potentially tap into new segments of investors in the region’s largest capital market, two companies in Saudi Arabia have been granted experimental permits to test robo-advisory services and computer-generated advice for investors.
According to a statement made from The Saudi Capital Market Authority (CMA), Wahed Capital and Haseed Investing Company have received approval to test their robo-advisory services.
Zawya portal quoted the Group CEO at Wahed Junaid Wahedna, who asserted that Saudi youth in particular are very passionate about digital products & offerings.
“We also expect a huge demand from women, who have expressed significant interest due to the privacy and convenience digital investment platforms provide,” he told Zawya.
Mohamed Roushdy, a Dubai-based FinTech advisor at an asset management firm says that if this platform is implemented after passing the experimental period, it would encourage millennial, tech-savvy, mid-income people and those living in rural areas to enter this segment of investment, granting them unlimited potential at a young age.
The fact that Wahed Capital offers Shariah-compliant robo-advisory services is significant for the KSA market and makes it attractive to a wider customer base, Roushdy noted.
Meanwhile, Wahed's Junaid is expecting Saudi to be one of our largest global markets, if not the largest, adding that the Saudi market as a whole is in need of transparent & efficient financial products in line with global standards.
In a bourse filing, CMA said that these temporary permits allow clients to get advice on securities or investment schemes through direct access to an automated online platform, in addition to being able to also offer automated online discretionary investment management.
In a bourse filing, CMA said that these temporary permits allow clients to get advice on securities or investment schemes through direct access to an automated online platform, in addition to being able to also offer automated online discretionary investment management.
Although Saudi Arabia recently joined the race to promote a FinTech ecosystem in April 2018 with its launch of FinTech Saudi, after fellow Gulf countries like UAE and Bahrain, its progress is ‘remarkable’ according to Roushdy’s statements to Zawya.
Internationally, assets under management in the robo-advisory segment reached more than $980 billion in 2019, according to Statista. The assets under management are expected to show an annual growth rate of 27% resulting in more than $2.5 trillion by 2023.
Article tags
Saudi Arabia, KSA, Abu Dhabi, Dubai, Saudi women, robo-advisory, Zawya, Statista, Wahed Capital, Saudi Capital Market Authority, CMA, Haseed Investing Company
