Assets of investment funds in Saudi Arabia increased by 5 % at the end of the third quarter of 2014 to reach about 121.54 billion riyals compared to about 115.92 billion riyals at the end of the second quarter of 2014.

Assets of investment funds in Saudi Arabia increased by the end of the third quarter of 2014. According to updated quarterly data published by the Saudi Monetary Authority (SAMA), the rise in investment fund assets at the end of Q3 2014 followed an increase in local fund assets by about 1.6TP3T and a decrease in foreign assets by about 1.2TP3T.

While local fund assets increased by about 1.6TP3T, foreign fund assets decreased by about 1.2TP3T. Despite the increase in assets on a quarterly and annual basis, we find a decline in the volume of domestic real estate investments on a quarterly basis, as well as a significant decline in the volume of foreign investments on an annual basis, amid the funds“ focus on the Saudi interior.

We find a decline in the volume of domestic real estate investments on a quarterly basis, as well as a significant decline in the volume of foreign investments on an annual basis. The volume of Saudi funds” assets at the end of the third quarter of this year (122 billion riyals) is the highest since the first quarter of 2006, when it reached 142 billion riyals.

<At the annual level, we find that the rise in fund assets came after focusing on domestic investments, especially in cash instruments and local stocks, the two aspects that control 73.4% of the total assets of the funds, where it increased in local stocks (26.18% of total assets) by 38.7%, and increased in local cash instruments (47.25% of total assets) by 22%, as well as in local cash instruments (47.25% of total assets) by 22%. Meanwhile, Saudi funds“ investments in everything on the foreign side, whether bonds, stocks, monetary instruments, or other assets, declined.

Saudi funds” assets consist of bonds, stocks, monetary instruments, and other assets.

The assets of investment funds consist of domestic assets and foreign assets, each of which includes stocks, bonds, cash instruments, other assets, as well as real estate investments.

One fund in 3 months

Recent statistics from the Saudi Arabian Monetary Agency (SAMA) showed that the number of investment funds operating in the Kingdom increased by 2.88% (7 funds) to reach 250 funds by the end of the third quarter of 2014 compared to 243 funds by the end of the third quarter of 2013, while the number of funds increased by one fund during three months.

The number of funds compared to the number of funds at the end of the second quarter of this year increased by one fund during three months. 9.8k subscribers withdrew

Withdrawal of 9.8k subscribers

According to SAMA, the number of subscribers to investment funds at the end of the third quarter reached 215.7 thousand subscribers compared to 254.2 thousand subscribers at the end of the second quarter, which indicates the withdrawal of 2398 subscribers during the second quarter of this year, while the number of subscribers at the end of the third quarter of 2013 amounted to 261.5 thousand subscribers, which means that 9.78 thousand subscribers withdrew within a year.

The number of subscribers to investment funds at the end of the third quarter of 2013 amounted to 261.5 thousand subscribers. The number of subscribers to Saudi mutual funds at the end of the third quarter of 2014 was the lowest level since the first quarter of 2005, when it reached 221.76 thousand subscribers, and the largest number of subscribers reached in the first quarter of 2006 when it reached 680.6 thousand subscribers, and since that quarter the number of funds has not seen any increase.

The number of subscribers to Saudi mutual funds during the second quarter of this year, while the number of subscribers at the end of the third quarter of 2013 amounted to 261.5 thousand subscribers. An investment fund is a financial vessel owned by thousands of investors, and the fund's capital is backed by millions of riyals, and is managed by specialized experts who conduct studies on the best companies to invest in to ensure the best possible return.

The value of the investment in the investment fund changes according to the increase and decrease in the prices of the stocks and bonds that make up the fund, and the value of the fund depends on two returns: the percentage increase in the price of the document, and the cash distribution determined by the investment manager.

The value of the fund depends on two returns, namely the percentage increase in the price of the document, and the cash distribution determined by the investment manager.