New Sharia-compliant Saudi equity fund launched

Investors urged to take advantage of growth potential
New Sharia-compliant Saudi equity fund launched
Fund seeks to achieve long-term and risk-adjusted capital appreciation

SHUAA Capital has launched a new Sharia-compliant equity fund to support high-net-worth-individuals seeking to invest in Saudi Arabia.

The asset management and investment banking platform said the SHUAA Saudi Equity Fund is structured to capitalize on the growing potential of Saudi Arabia. In addition, it will pursue investment opportunities in other equities within the Gulf Cooperation Council (GCC) nations.

Ajit Joshi, MD and head of Public & Private markets at SHUAA Capital, said: “The SHUAA Saudi Equity Fund offers timely avenues for investors to take advantage of the region’s growth potential and diversify their portfolios.”

Saudi equity fund investments

Primarily, the Saudi Equity Fund will invest in Sharia-compliant equities in Saudi Arabia.  Moreover, it will utilize a small allocation for other member states of the GCC.

Countries in the Gulf have emerged as powerful forces in the global economy, given their diversification initiatives and enterprising development strategies. Thus, the equity fund invest across a wide range of industries within the GCC.

“Given the rising investor interest in Sharia-compliant investments, SHUAA’s specially designed managed funds within the ICC framework serve these demands efficiently, while tapping into market-specific opportunities,” Joshi said.

Read: GCC markets mostly positive, ahead of earnings report

Wide range of industries to benefit

The newly established equity fund seeks to provide support for global corporate entities. It will invest in a wide range of industries across Saudi Arabia and other GCC member states. In addition, it will focus investments in long-term and risk-adjusted capital appreciation.

Furthermore, the Saudi Equity Fund will invest in stocks across a mix of established and emerging business models.

According to Joshi, subscribers can have the option to receive periodic dividends under a separate dividend class through a distribution platform, Allfunds bank. Meanwhile, another option is through direct subscriptions.

Diversified funds

The SHUAA Saudi Equity Fund was launched through the Incorporated Cell Company (ICC) structure to initiate strategies and tap into equities. In addition, it will invest in sukuk and multi-asset platforms across strong economies.

With the launch of the SHUAA Saudi Equity Fund, the ICC umbrella now offers six diversified funds.

Among them are SHUAA Global Sukuk Fund, SHUAA Global Equity Fund, and SHUAA North America. The others are Equity Fund, Nujoom Aggressive Fund, and Nujoom Balanced Funds. The ICC platform has over $350 mn in assets under its management.

SHUAA GMC is the investment manager of six funds under the ICC umbrella.

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