Saudi Mutual Funds:
2025 Performance Review
Saudi Arabia's fund industry surpassed SAR 1 trillion in assets under management in 2024. As the market opens to foreign capital and retirement reform shifts more responsibility onto individual savers, fund performance has never mattered more. Here is how 217 publicly listed funds performed last year.
Why This Matters
The Saudi fund industry is entering a new era. Total assets under management surpassed SAR 1 trillion in 2024, a 20% year-on-year increase, reaching approximately $295 billion by early 2025. S&P Global Ratings projects AUM will exceed $400 billion by 2030. The number of investment funds (including mutual funds, ETFs, and closed-end funds) has nearly tripled since 2017, reaching 1,549 by end of 2024.[1][2]
At the same time, the Capital Market Authority abolished the Qualified Foreign Investor (QFI) regime effective February 2026, opening Tadawul to all categories of foreign investors without qualification thresholds.[3] Foreign ownership in listed equities already stands at approximately SAR 460 billion, or nearly 13% of free-float shares.[5] Greater foreign participation raises the competitive bar for domestic fund managers.[3]
On the demand side, the 2024 reform of the Social Insurance Law is gradually raising the statutory retirement age from 58 to 65 and extending the qualifying period for early retirement from 25 to 30 years. Contribution rates for new entrants are increasing through 2028. The shift signals a structural move: reliance on state pensions alone may not be sufficient, and individuals will need to take a more active role in building long-term savings.[4]
Vision 2030's Financial Sector Development Program explicitly targets deeper capital markets, broader savings participation, and a more competitive asset management industry. The implication is clear: the fund industry must deliver measurable value to retain domestic capital and attract international flows. This report examines which funds did exactly that, and which fell short.
Methodology
Data Source: Public filings and NAV data covering 344 publicly listed mutual funds.
Return Calculation: Full-year 2025 net return = (NAV on last trading day of 2025 − NAV on first trading day of 2025) ÷ NAV on first trading day × 100. Because NAV already reflects deducted management fees and expenses, all returns in this report are net of fees.
Coverage: This report covers open-ended mutual funds only (excluding ETFs, CEFs, and commodity funds). Of those, 217 had sufficient data for the full year. Funds returning exactly 0% (typically charity endowments or inactive vehicles) were excluded, as were funds with limited 2025 data (e.g., newly launched or suspended).
Peer Comparison: Each fund's stated benchmark was standardized into broad index groups (e.g., all SAIBOR/SAIBID tenors become "SAR Interbank Rate"; all S&P Saudi Arabia variants become "Saudi Equity Index"). Funds are then grouped by category + benchmark index, forming peer cohorts of funds with similar mandates. Only groups with at least 10 peers are included in the ranking tables. The Sharpe ratio measures how much return a fund earned per unit of risk taken. Higher is better, and negative values indicate the fund lost money relative to a risk-free alternative.
Performance by Category
The 217 funds with full-year data fall into three broad categories. Money market funds delivered consistent positive returns, while equity funds, the largest group, averaged a −7.3% loss amid a challenging year for Saudi equities.
| Category | # Funds | Avg Return | Best | Worst |
|---|---|---|---|---|
| Equity | 137 | −7.3% | +29.4% | −25.6% |
| Money Market | 49 | +4.3% | +5.9% | +1.6% |
| Multi-Asset | 31 | +0.1% | +16.2% | −17.0% |
Peer Comparison: Same Mandate, Different Results
Category averages provide a useful starting point, but they obscure meaningful differences. The 137 equity funds span a wide range of mandates, from Saudi TASI trackers to GCC regional strategies and global Islamic equity indices. Comparing a Saudi small-cap fund against one tracking the MSCI ACWI reveals little about genuine skill.
To isolate manager value-add, we group funds by category × standardized benchmark index. Each fund's stated benchmark is mapped to one of eight broad index families (e.g., "SAR Interbank Rate," "Saudi Equity Index," "GCC Equity Index"). Funds are then compared only against peers sharing the same mandate. Only peer groups with at least 10 funds are included to ensure statistical relevance, which is why some categories (Fixed Income, Multi-Asset) do not appear in the rankings below.
The tables below rank the top three and bottom three performers within each qualifying peer group: first by net return, then by Sharpe ratio (return per unit of risk).
Equity Funds: Winners & Losers by Net Return
Among the 137 equity funds, benchmark peer groups range from 14 funds (GCC Equity Index) to 78 (Saudi Equity Index). The table below shows the top 3 and bottom 3 by absolute return, alongside their peer group average.
| # | Fund Name | Family | AUM (SAR) | Benchmark | 2025 Return | Peer Avg | vs Peers |
|---|---|---|---|---|---|---|---|
| ▲ Winners | |||||||
| 1 | Riyad Gulf Equity Fund (ex-Saudi) | Riyad Capital | 171.2M | GCC Equity | +12.21% | −2.62% | +14.83% |
| 2 | SAB Invest GCC Conventional Equity Fund | SAB Invest | 32.1M | GCC Equity | +9.18% | −2.40% | +11.58% |
| 3 | anb capital Saudi Equity Fund | anb capital | 109.6M | Saudi Equity | +6.16% | −9.98% | +16.14% |
| ▼ Losers | |||||||
| 1 | Saudi Fransi Capital Saudi Equity Income Fund | Saudi Fransi Capital | 28.9M | Saudi Equity | −20.09% | −9.65% | −10.44% |
| 2 | Rassanah Flexible Saudi Equity Fund | Rassanah Capital | 5.1M | Saudi Equity | −20.64% | −9.64% | −11.00% |
| 3 | Itqan Capital Saudi Equity Fund | Itqan Capital | 3.0M | Saudi Equity | −23.48% | −9.60% | −13.88% |
Equity Funds: Winners & Losers by Sharpe Ratio
The Sharpe ratio measures return per unit of risk. Put simply, it asks: "Was the return worth the volatility?" A fund with a high return but extreme swings may rank lower than a steadier performer. Among equity funds with Sharpe data (93 of 137), here are the best and worst risk-adjusted performers.
| # | Fund Name | Family | AUM (SAR) | Benchmark | Sharpe | Peer Avg | vs Peers |
|---|---|---|---|---|---|---|---|
| ▲ Winners | |||||||
| 1 | SAB Invest GCC Equity Fund | SAB Invest | 425.9M | GCC Equity | +1.86 | −0.25 | +2.11 |
| 2 | Riyad Gulf Equity Fund (ex-Saudi) | Riyad Capital | 171.2M | GCC Equity | +1.12 | −0.19 | +1.31 |
| 3 | SAB Invest GCC Conventional Equity Fund | SAB Invest | 32.1M | GCC Equity | +0.68 | −0.16 | +0.84 |
| ▼ Losers | |||||||
| 1 | anb capital IPO Fund (Shariah) | anb capital | 210.7M | Saudi Equity | −1.57 | −0.92 | −0.65 |
| 2 | Alawwal Periodical Income Fund | Alawwal Capital | 7.3M | Saudi Equity | −1.64 | −0.92 | −0.72 |
| 3 | Saudi Fransi Capital Saudi Equity Income Fund | Saudi Fransi Capital | 28.9M | Saudi Equity | −1.96 | −0.91 | −1.05 |
Money Market Funds: Winners & Losers by Net Return
The 49 money market / murabaha funds had a tight performance range, but differences still matter when absolute returns are low. The dominant peer group (37 funds) benchmarks against the SAR Interbank Rate.
| # | Fund Name | Family | AUM (SAR) | Benchmark | 2025 Return | Peer Avg | vs Peers |
|---|---|---|---|---|---|---|---|
| ▲ Winners | |||||||
| 1 | Al Rajhi Awaeed Fund | Al Rajhi Capital | 23.9B | SAR Interbank | +5.87% | +4.49% | +1.38% |
| 2 | SNB Capital Al Sunbullah SAR Fund | SNB Capital | 24.5B | SAR Interbank | +5.83% | +4.49% | +1.34% |
| 3 | Alpha Murabaha Fund | Alpha Capital | 7.8B | SAR Interbank | +5.79% | +4.49% | +1.30% |
| ▼ Losers | |||||||
| 1 | SNB Capital Al Razeen SAR Liquidity Fund | SNB Capital | 487.4M | SAR Interbank | +1.97% | +4.60% | −2.63% |
| 2 | Riyad SAR Diversified Trade Fund | Riyad Capital | 4.1B | SAR Interbank | +1.76% | +4.60% | −2.84% |
| 3 | SNB Capital Al Razeen USD Liquidity Fund | SNB Capital | 9.7M | USD Short-Term | +1.58% | +3.86% | −2.28% |
Money Market Funds: Winners & Losers by Sharpe Ratio
In money market, Sharpe ratios are especially revealing: a fund that delivers 5% with near-zero volatility looks vastly different from one that delivers 4% with weekly swings. The spread is dramatic, ranging from +10.9 to −25.3.
| # | Fund Name | Family | AUM (SAR) | Benchmark | Sharpe | Peer Avg | vs Peers |
|---|---|---|---|---|---|---|---|
| ▲ Winners | |||||||
| 1 | Artal Murabaha Fund | Artal Capital | 322.2M | SAR Interbank | +10.86 | +2.42 | +8.44 |
| 2 | Yaqeen SAR Murabaha Fund | Yaqeen Capital | 553.1M | SAR Interbank | +8.95 | +2.47 | +6.48 |
| 3 | SNB Capital Al Sunbullah SAR Fund | SNB Capital | 24.5B | SAR Interbank | +7.96 | +2.50 | +5.46 |
| ▼ Losers | |||||||
| 1 | Riyad SAR Trade Fund | Riyad Capital | 1.2B | SAR Interbank | −12.03 | +3.04 | −15.06 |
| 2 | Riyad USD Diversified Trade Fund | Riyad Capital | 58.9M | USD Short-Term | −20.06 | +0.34 | −20.40 |
| 3 | Riyad SAR Diversified Trade Fund | Riyad Capital | 4.1B | SAR Interbank | −25.35 | +3.40 | −28.75 |
Key Takeaways
GCC Equity Led the Pack
The top equity winners, Riyad Gulf (ex-Saudi) at +12.2% and SAB Invest GCC at +9.2%, outperformed their GCC Equity Index peer average by 11–15%. In a year when most equity peers posted losses, that gap represents significant outperformance.
Bottom Equity Funds Trailed Sharply
The three worst Saudi equity funds (Saudi Fransi, Rassanah, and Itqan) fell 20–24%, trailing their peer group average of −9.6% by 10–14 percentage points.
Money Market: Scale Advantage
The leading money market funds, Al Rajhi Awaeed (SAR 23.9B AUM) and SNB Al Sunbullah (SAR 24.5B), demonstrate that scale and negotiating power translate directly into higher yields for unitholders.
Sharpe Ratio Extremes
Three Riyad Capital trade funds posted extreme negative Sharpe ratios (−12 to −25), dramatically below their peer average of +2.5 to +3.4. Volatility of this magnitude deserves close attention from investors prioritizing capital preservation.
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- Capital Market Authority, "CMA: Assets Under Management Surpass SAR 1 Trillion for the First Time," GOV.SA, May 20, 2025. my.gov.sa/en/news/341144
- S&P Global Ratings, "Saudi Arabia's Asset Management Industry in a Global Context," 2025. spglobal.com
- Capital Market Authority, "CMA Announces Abolition of the Qualified Foreign Investor (QFI) Regime," effective February 1, 2026. cma.gov.sa
- Saudi Gazette, "New Social Insurance Law Comes into Force on Tuesday," July 1, 2025. saudigazette.com.sa
- Saudi Exchange, "Weekly Stock Market Ownership and Trading Activity Report," Week Ending 12 February 2026. saudiexchange.sa
Disclaimer: This article is for informational and educational purposes only. It does not constitute investment advice, a recommendation, or a solicitation to buy or sell any securities. Past performance is not indicative of future results. All data is sourced from publicly available fund NAV records. Usool Research is not a licensed investment advisor. Always consult a qualified financial advisor before making investment decisions.