Assets of local equity funds grew by 20 percent to hit SR21 billion by the end of November 2013 compared to SR17.6 billion in 2012, local media said quoting an expert.

Meanwhile, assets of foreign equity funds rose by 20 percent to reach SR12.6 billion compared to SR10.5 billion in 2012, Head of Assets at EFG Hermes Saudi Arabia Majid Kubbra told Al-Eqtesadiah daily.

Kubbra said assets of investments funds in the Kingdom jumped to SR102.3 billion in November compared to SR88.1 billion in 2012, or an increase of 16 percent.

On sectors mostly contributed to the growth of local equity funds in 2013, he said hospitably and tourism sector came on top of these sectors which registered a growth rate of 122.9 percent, followed by retail (55.8 percent), and real estate development (42.6 percent).

Petrochemical and banking sectors registered a growth rate of 28.7 percent and 22 percent, respectively, in 2013, he said.

Kubbra predicted that Saudi stock market will achieve good performance during the current year supported by robust growth of Saudi economy, and recovery of international economy.

Petrochemical and banking sectors will also give strong boost to the stock market in the current year contrary to the previous when the stock market received key support from small and medium-scale sectors, he added.

Petrochemical sector, in particular, is predicted to register a positive performance in the current year on the expected demand growth on products thanks to global economic recovery and its positive reflection on profitability and equity value at the stock market, Kubbra said.

Likewise, drop in provisions will give boost to the local banks in the current year, he added.

Apart from petrochemical and banking sectors, certain sectors are poised to positively contribute to the stock market growth such as telecom, retail, foods, and construction sectors thanks to mega infrastructure projects being carried out by the government, Kubbra said.