Sharia-Compliant Robo-Advisors See Record Growth in Saudi Arabia and UAE

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Sharia-compliant robo-advisors see record growth. Expanding retail investment access in Saudi Arabia and the UAE.

Saudi robo-advisory assets under management reached SAR 4.3 billion (around US$1.2 billion) by H1 2025, a 90% year-on-year increase.
Around 432,000 retail customers used Saudi robo-advisory platforms in H1 2025, yet penetration remains below 2% of the adult population.
Abyan Capital, Malaa Technologies, Drahim, and Wahed Invest are the leading Sharia-compliant robo-advisory platforms in Saudi Arabia.
Saudi Arabia's Capital Market Authority opened a 30-day public consultation in August 2025 on a draft robo-advisory regulatory framework.
UAE platform Sarwa holds dual FSRA and DFSA regulation and offers dedicated Islamic ETF portfolios from around USD 500.
Islamic-compliant investing features are now a competitive baseline across GCC retail platforms, not a niche add-on.

GCC Regulators Drive Wealthtech Expansion with New Compliance Frameworks

The rapid rise of Sharia-compliant robo-advisory services across Saudi Arabia and the UAE reflects structural demand from Muslim-majority populations that treat Islamic finance principles as a default requirement rather than a preference. Saudi Arabia's Capital Market Authority (CMA) and the UAE's Financial Services Regulatory Authority (FSRA) have both moved to formalise governance standards for algorithm-driven investing, creating a clearer path for licensed wealthtech platforms to scale responsibly.

Internationally accepted benchmarks published by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) underpin the screening logic that Saudi and UAE robo-advisory algorithms apply to portfolio companies. Platforms integrating these standards alongside automated rebalancing and Zakat calculation tools are positioning Sharia-compliant robo-advisory as the GCC region's next major retail investing growth segment.

Saudi Arabia's Robo-Advisory Market Reaches SAR 4.3 Billion

Saudi Arabia's robo-advisory sector recorded dramatic growth in the 12 months to H1 2025. Assets under management (AUM) - the total value of client portfolios held on a platform - reached SAR 4.3 billion (approximately US$1.2 billion), a 90% year-on-year increase, according to Saudi financial outlet Argaam as reported by Fintechnews.ae. The number of portfolios rose 54% in the same period to around 400,000.

Despite those figures, penetration remains limited. Around 432,000 retail customers used robo-advisory services in H1 2025, representing less than 2% of Saudi Arabia's adult population. For context, digital wallets had 14.4 million active users and buy-now-pay-later (BNPL) platforms claimed registrations from roughly 33% of the domestic population - illustrating how early-stage the robo-advisory sector still is relative to other retail fintech verticals.

A survey of more than 29 Saudi fintech industry participants, conducted by early-stage investor Tenity and advisory group The Majlis, found that 66% identified wealthtech and investment platforms as the highest-growth fintech segment for 2025-2027. Respondents also noted that the market remains fragmented, dominated by single-product offerings, and ripe for more integrated Sharia-compliant platforms.

Leading Platforms: Abyan, Malaa, Drahim and Wahed

Saudi Arabia had 13 CMA-authorised robo-advisory firms by H1 2025, though only a subset has reached significant scale. Abyan Capital, described as Saudi Arabia's first Sharia-compliant automated investment platform, had accumulated over SAR 1.4 billion in deposits and more than 100,000 portfolios. Its algorithmic portfolio construction is designed for investors without prior investing experience.

Malaa Technologies, founded in 2021 and licensed by the Saudi Central Bank (SAMA), builds portfolios from exchange-traded funds (ETFs - pooled investment vehicles that track an index or sector) covering US stocks, Saudi equities, gold, and sukuk-like bond exposures, with a minimum of SAR 1,000. Its fee model charges 0.35% only on withdrawal. An internal Sharia committee and external auditors provide ongoing oversight, and automatic Zakat calculation is built directly into the platform.

Drahim, licensed by both SAMA and the CMA, offers ten Sharia-compliant portfolios spanning sukuk, real estate, and global equities from SAR 1,000, with annual fees from around 0.25%. Wahed Invest, founded in 2015 and backed by Saudi Aramco's venture arm Wa'ed following a US$25 million fundraise in 2020, holds CMA approval in Saudi Arabia and works with the Shariah Review Bureau to supervise ongoing compliance and purify portfolios of any non-compliant income.

How Sharia-Compliant Algorithms Work

Commentary on Saudi wealthtech consistently stresses that local robo-advisory algorithms must go further than conventional Western models. Standard sector screens exclude companies involved in alcohol, gambling, conventional banking and insurance, tobacco, and weapons. Platforms also apply financial ratio analysis - aligned with AAOIFI-style thresholds - to ensure portfolio companies do not hold excessive debt or derive significant income from interest.

Many platforms publish endorsements from Sharia boards or committees to build investor trust, and maintain ongoing supervision to ensure screens remain current as company profiles change. Product design is increasingly goal-based, organising user journeys around concrete objectives such as saving for a home, children's education, or retirement, supported by automated funding schedules and progress dashboards rather than abstract benchmarks alone.

Saudi CMA Formalises the Regulatory Framework

In August 2025, the CMA invited capital market stakeholders to provide feedback on a draft regulation for robo-advisory services, opening a 30-day consultation period, as reported by MENA Fintech. The proposed rules would allow licensed capital market institutions to offer algorithm-driven portfolio management under existing M1 and M2 licence categories, with advance notification of strategies and models required before deployment to clients.

The draft mandates periodic algorithm testing, diversification requirements to prevent excessive concentration in a single issuer, and clear client disclosures on asset selection, allocation rules, and rebalancing mechanisms. Where portfolios include non-Saudi securities, the relevant instruments must be regulated in jurisdictions meeting CMA-equivalent standards. The CMA has stated the framework is designed to support fintech innovation and expand access for individual investors with limited prior experience.

The UAE Landscape: Sarwa and the Islamic Investing Baseline

The UAE's retail investment platform market operates under a dual regulatory structure. The FSRA supervises activity in Abu Dhabi Global Market (ADGM), while the Dubai Financial Services Authority (DFSA) oversees firms in the Dubai International Financial Centre (DIFC). Sarwa, founded in 2018 and headquartered in Abu Dhabi, holds both authorisations and was granted the first innovation licence by DIFC for its robo-advisory model, according to Islamic Finance Guru.

Sarwa constructs ETF portfolios with automated rebalancing from around USD 500, and offers dedicated Sharia-screened Islamic portfolios regulated by the FSRA. Access to human advisors via chat or call is available - an unusual feature for an entry-level platform globally. Its broader suite includes Sarwa Trade (self-directed access to over 4,000 US-listed stocks and ETFs from USD 1), Sarwa Save+ for cash management, and Sarwa Crypto.

Islamic investing features have become a competitive baseline across UAE-facing platforms, not a premium tier. Global brokers serving UAE residents - including Pepperstone, XM, and Plus500 - now offer swap-free accounts, removing conventional overnight interest charges. The broader trend, as noted in the UAEAdvisorGuide 2026 platforms review, is that Sharia-compliant options are expected as standard by UAE retail investors, given the high proportion of Muslim investors and the region's positioning as a global Islamic finance hub.

What This Means for GCC Advisors and Platforms

Saudi Arabia's growth metrics signal that significant headroom remains for robo-advisory expansion across the GCC. With less than 2% adult population penetration and SAR 4.3 billion in AUM, even modest increases in retail participation could generate substantial inflows for well-positioned platforms.

UAE platforms already offering Sharia-compliant ETF portfolios and dual FSRA/DFSA oversight are well-placed to capture regional demand, particularly if they expand into Saudi equity exposure, GCC sukuk, or Saudi-domiciled funds. The convergence of CMA and UAE regulatory standards on diversification, algorithm testing, and transparency should also ease cross-border licensing and partnership discussions for firms active in both markets.

For wealth managers and platform providers, the key takeaway from Saudi Arabia's experience is that Sharia compliance must be embedded at the algorithm level, independently supervised, and clearly disclosed to clients - not treated as a marketing layer applied after the fact.

What Clients are Asking their Advisors

What is a Sharia-compliant robo-advisor and how does it differ from a conventional one?

A Sharia-compliant robo-advisor uses algorithms to build portfolios that exclude businesses involved in prohibited activities such as alcohol, gambling, conventional banking, and tobacco. Unlike conventional robo-advisors, the algorithms also apply financial ratio screens to ensure companies do not hold excessive interest-bearing debt, and many platforms include automatic Zakat calculation tools for Muslim investors.

How do I invest in a halal robo-advisory platform as a UAE resident?

In the UAE, platforms such as Sarwa offer Sharia-screened ETF portfolios regulated by the FSRA, with minimums around USD 500 and free AED deposits via local bank transfer. You open an account through the app, complete a suitability questionnaire, and the platform constructs and automatically rebalances a compliant portfolio on your behalf.

How does Saudi Arabia's robo-advisory market compare in size to the UAE's?

Saudi Arabia has a more developed standalone robo-advisory sector, with 13 CMA-licensed firms and over SAR 4.3 billion in assets under management by H1 2025, supported by explicit national savings policy and a dedicated regulatory consultation. The UAE market is smaller in standalone robo-advisory terms but internationally connected, with platforms like Sarwa operating under dual FSRA and DFSA oversight alongside global brokers offering Islamic account options.

What are the main risks of using a GCC robo-advisor for Islamic investing?

Key risks include algorithmic errors in Sharia screening, concentration in a narrow set of compliant assets, and the relatively early stage of dedicated regulatory frameworks in some markets. Investors should verify that platforms hold current licences from recognised regulators - such as CMA, SAMA, FSRA, or DFSA - and that Sharia compliance is independently audited rather than self-certified.