Supporting economic diversification
The establishment of Apex FundRock’s ManCo aligns perfectly with Saudi Arabia’s Vision 2030, contributing to the expansion of non-oil GDP and attracting foreign investments. The Kingdom’s non-oil sector experienced a 6.1% growth in Q3 2023, reflecting the success of diversification initiative.
ManCos play a vital role in fostering innovation and growth by creating advanced structures tailored to both institutional and retail investors. Their operations generate substantial employment opportunities, particularly in fund administration, legal, compliance, and investment strategies. With 72% of the Saudi population between the ages of 15 and 64 (source: World Bank), Apex/FundRock’s entry is timely, addressing the need for skilled job creation in the financial services industry and specifically in investment management.
Foreign direct investment has become a cornerstone of Saudi Arabia’s economic progress, increasing by 36% in 2023 and is expected to reach 3% of GDP in 2024 (source: Ministry of Investment). Apex FundRock’s presence is expected to attract more global asset managers, private equity firms, and venture capitalists, reinforcing Riyadh’s status as a key regional and global financial hub.
Positive Impact on Saudi Arabia’s capital markets
As the largest capital market in the Middle East and the 10th largest globally, with a market capitalization of SAR 11 trillion ($2.9 Tn as of November 2024), the Saudi Stock Exchange (Tadawul) is pivotal to the region’s economic growth. Apex/FundRock is set to vitalize these markets through introducing institutional-grade vehicles for sophisticated real estate investment trusts (“REITs”), exchange-traded funds (“ETFs”), and private equity offerings.
These vehicles not only expand investment options for local and global investors but also boost market liquidity, making Tadawul more attractive to additional larger participants worldwide. Furthermore, Apex FundRock brings international best practices at all levels of the investment management value chain and particularly in compliance and governance, fostering greater investor confidence. This is crucial as Saudi Arabia continues to climb on the top of global rankings for business and investment friendliness.
Transforming the asset management landscape
Estimated at $250 billion in H1 - 2024 by Fitch and projected to exceed $1 trillion by 2030, Saudi Arabia’s asset management sector is the fastest-growing globally. Apex FundRock’s ManCo platform will significantly contribute to this growth by enabling seamless fund operations and compliance, empowering asset managers to focus on strategy and value creation.
Saudi Arabia’s strategic location as a gateway to the Middle East, North Africa, and South Asia region makes it a natural choice for global asset managers. Apex FundRock’s expertise will facilitate market entry, offering pre-established regulatory frameworks and operational infrastructure. This efficiency is particularly time and cost sensitive endeavors.
The strategic role of Apex FundRock
Navigating the of Saudi Arabia’s regulatory environment can be time consuming for foreign firms. Apex FundRock’s Manco services can draw the roadmap for foreign firms by providing robust compliance frameworks, risk management tools, and local market insights. These services also ensure operational efficiency, enabling faster market entry and cost-effective fund launches.
By fostering transparency and adhering to both global and domestic standards, Apex FundRock signals its commitment to investor trust. This not only enhances the firm’s reputation but also adapts the appeal of Saudi Arabia’s capital markets to institutional investors, including sovereign wealth funds.
Apex FundRock’s ManCo services provide local Saudi fund managers with a strategic gateway to global investors, enabling them to scale their operations and attract international capital. By leveraging Apex FundRock’s established infrastructure, regulatory expertise, and extensive network, Saudi fund managers can ensure their funds meet international compliance standards, enhancing their credibility on the global stage.
Additionally, Apex FundRock’s knowledge of cross-border regulations and investor preferences simplifies the process of structuring funds that appeal to institutional and retail investors worldwide. This streamlined approach not only reduces operational burdens but also opens doors to global distribution channels, positioning Saudi funds as attractive investment opportunities in key markets across Europe, Asia, and the Americas.
At a glance
Entering Saudi Arabia’s dynamic financial market can be simplified via Apex FundRock’s ManCo services by providing the following:
- Regulatory expertise: Full compliance with Saudi regulations, including fund registration and ongoing reporting.
- Risk management: Robust governance frameworks to mitigate financial and operational risks.
- Local market insights: Knowledge of investor preferences and competitive landscapes, supported by established regional networks.
- Cost-effective operations: Pre-established infrastructure that reduces setup costs and accelerates fund launches.
- Faster market entry: Ready-made legal frameworks and operational readiness for immediate market access.
A gateway to Vision 2030
Apex FundRock’s launch in Riyadh is more than a business milestone; it is a transformative step toward achieving Saudi Arabia’s Vision 2030. By contributing to financial services, boosting capital markets, and revolutionizing asset management, Apex FundRock is positioning itself as a unique key player in the Kingdom’s economic future.
For global investors and asset managers, Saudi Arabia offers unparalleled opportunities within a fast-evolving financial landscape. Partnering with a ManCo like Apex FundRock ensures a seamless, compliant, and efficient entry into this dynamic market, paving the way for long-term success.
