In an era where financial markets fluctuate unpredictably, even the largest investment firms have faced challenges in navigating economic shifts. One such firm is SNB Capital, the investment arm of Saudi National Bank (SNB) and the region’s most significant asset management firm, overseeing $63.73 billion in assets under management (AUM) as of December 2024.
Since assuming leadership of SNB Capital in February 2021, CEO Rashed Sharif has been at the helm of one of Saudi Arabia’s most notable financial transformations. Under his stewardship, the firm has executed record-breaking IPOs, established innovative financial products, and pioneered key capital market transactions that have cemented SNB Capital’s reputation as a powerhouse in Saudi Arabia’s financial sector.
Building an Investment Powerhouse
Sharif attributes the company’s resilience and continued growth to its diversified services and products. “From asset management with over 50 public funds operating across multiple asset classes to leading Saudi Arabia’s biggest IPOs, SNB Capital has broken barriers,” he explains. Among its key milestones, SNB Capital:
- Executed Saudi Aramco’s $12.35 billion secondary offering in June 2024—the largest of its kind in EMEA since 2000.
- Led Public Investment Fund’s (PIF) sale of 100 million shares in stc, worth $1.03 billion, through an accelerated book building (ABB) process in November 2024.
- Managed the $323.5 million IPO of Nice One, a Saudi e-commerce beauty and personal care platform, in January 2025.
A Historic Merger
Sharif’s journey with SNB Capital began with a pivotal merger. In April 2021, NCB Capital and Samba Capital merged, forming SNB Capital as a subsidiary of Saudi National Bank.
The transition was no small feat. “Our biggest concern was ensuring the merger did not negatively impact our customers,” says Sharif. The technical challenge? Deciding which technology infrastructure to retain—NCB Capital’s or Samba Capital’s.
“After extensive analysis, it became clear that transitioning Samba clients to NCB Capital’s system was the better choice due to its stronger infrastructure and larger client base,” he explains. The firm set up a dedicated merger task force that worked daily alongside a consulting firm to ensure a smooth transition.
Expanding SNB Capital’s Financial Landscape
Beyond investment banking and IPOs, Sharif’s strategy focuses on diversification, reducing dependency on volatile market conditions. SNB Capital has significantly expanded into private equity, real estate, and alternative investments.
- Real Estate Growth: Between 2008 and 2021, SNB Capital managed just five real estate funds. Since 2021, it has added 11 more, reinforcing its role in Saudi Arabia’s booming real estate sector.
- Alternative Investments: These grew from $3.5 billion in 2019 to $5.1 billion in 2024, demonstrating a strategic shift toward private markets and infrastructure funds.
Another strategic move was the restructuring of SNB Capital’s brokerage and securities divisions. The company introduced custody services, fund administration, market making, and securities lending, creating new revenue streams that are not dependent on the stock market.
One of the most significant results? SNB Capital’s assets under custody surged from $533.3 million in 2022 to $29.3 billion in 2024.
Tech-Driven Growth and Innovation
Fintech and Digital Transformation
Recognizing the rising influence of fintech, SNB Capital has invested in digital transformation. In October 2024, it partnered with Interactive Brokers (IBKR), enabling international investors to access the Saudi Exchange.
Additionally, SNB Capital’s ‘prop book’ division now leverages the company’s own balance sheet for investments, making up 25% of its total revenue by the end of 2024.
Investing in Robo-Advisory
A standout investment was Malaa, a robo-advisory platform providing AI-driven financial services. “Through Malaa, we increased our client reach and integrated three of our funds, resulting in an additional $53.3 million AUM in just two months,” Sharif reveals.
Facilitating Saudi Vision 2030
SNB Capital is positioning itself as a key player in Saudi Arabia’s economic diversification, in line with Vision 2030. It has developed real estate funds investing in hospitality and infrastructure projects linked to:
- Riyadh Expo 2030
- Saudi Arabia’s bid to host the 2034 FIFA World Cup
- Entertainment and tourism hubs
Additionally, SNB Capital was the lead investor in Tamara, the region’s largest Buy Now, Pay Later (BNPL) platform.
According to Amro Zakaria Abdu, CEO of Madarik Ventures, “Asset managers like SNB Capital must integrate fintech solutions to cater to Saudi Arabia’s young demographic.”
The Road Ahead: 2025 and Beyond
Looking ahead, SNB Capital has ambitious plans for 2025 and 2026, including:
- Expanding private credit and financing funds to attract institutional investors.
- Developing early-stage private equity portfolios, allowing clients to invest in diversified venture capital opportunities.
- Launching AI-powered investment platforms, offering real-time market insights tailored to individual trading behavior.
Sharif acknowledges the challenges ahead, particularly:
- Rising interest rates, which affect corporate borrowing and investment flows.
- The rise of zero-commission brokerage firms, increasing competition.
To counter this, SNB Capital is developing a next-generation AI-powered platform that will analyze client trading patterns and provide personalized insights.
The Trust Factor: A Competitive Edge
Despite technological disruptions and market volatility, Sharif believes SNB Capital’s greatest strength is client trust. “Our services are always available and reliable,” he notes. “This trust, combined with strategic diversification and technology-driven growth, positions SNB Capital at the forefront of Saudi Arabia’s financial future.”
By integrating cutting-edge technology, expanding alternative investments, and pioneering market innovations, SNB Capital is not just keeping pace with Saudi Arabia’s financial evolution—it is leading it.
