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Dynamics of Robo-Advisory Financial Services in Saudi Arabia

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  • Gazzaz, Heba

Abstract

Purpose: The study identifies benefits and limitations associated with robo-advisory services. It also presents the current robo-advisory industry of Saudi Arabia and evaluates its financial performance using multiple indicators from 2017 to 2029.Methodology: This paper conducts a systematic review to identify the advantages and limitations of robo-advisory services, followed by a comprehensive thematic analysis. It also performs a secondary data analysis to examine the performance of robo-advisory industry in Saudi Arabia.Findings: The financial services could benefit from adopting robo-advisory services, which offer cost-effectiveness, increased accessibility and scalability, automation, better risk profiling and objectivity. The key limitations of adopting Robo-advisory services include algorithmic bias, a lack of trust and transparency, legal and regulatory issues, privacy and data security concerns, and limited financial literacy. The study shows that the Saudi robo-advisory sector is predicted to record revenues of $34.56 million by 2025, with the penetration rate in the market expected to remain steady after 2022 due to market maturity. However, the assets under management have grown slowly since 2021.Implications: The study recommends regulatory support and framework enhancements for the sustainability of the industry. A greater focus on technology investment, innovation, and financial literacy is needed.

Suggested Citation

  • Gazzaz, Heba, 2025. "Dynamics of Robo-Advisory Financial Services in Saudi Arabia," Journal of Accounting and Finance in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 11(2), pages 209-230, June.
    • Handle: RePEc:src:jafeec:v:11:y:2025:i:2:p:209-230
    DOI: http://doi.org/10.26710/jafee.v11i2.3369
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