[PIF GLOBAL ASSET MANAGEMENT FORUM]
FIRESIDE WITH H.E. EL-KUWAIZ

The conversation centers around the rapid growth and diversification within the Saudi asset management industry. The discussion highlights the anomaly of asset management growth exceeding the underlying index performance, driven by diversification into real estate, fixed income, and venture capital. The speakers address the growth of private credit and real estate, as well as concerns about valuation levels in Riyadh. The regulator emphasizes the need to balance market development with investor protection. Concerns about global private credit risks and AI bubbles are voiced, though their impact on Saudi Arabia appears limited due to lower leverage. The speakers explore ways to attract foreign investment and internationalize financial intermediaries, including removing the QFI regime. Fund passporting within the GCC is already allowed, and offshore licensing regimes are being developed. The goal is for Saudi Arabia to become a top ten global capital market by 2030.