SHUAA introduces Sharia-compliant Saudi Equity fund

By Delisha Fernandes

SHUAA Capital, an asset management and investment banking platform, has launched a Sharia-compliant fund under the Incorporated Cell Company (“ICC”) umbrella, domiciled in Abu Dhabi Global Market and managed by SHUAA GMC Limited.

The new fund, SHUAA Saudi Equity Fund, is designed to capitalise on the growing potential of Saudi and GCC equities, providing regional and global institutional and High Net Worth individual investors with a strategic gateway to invest in the fast-growing Saudi public market. SHUAA Saudi Equity Fund will primarily invest in Sharia-compliant equities in Saudi Arabia, with a small allocation to other Gulf Cooperation Council member states (GCC).

SHUAA Saudi Equity Fund will be actively managed and will typically invest across a wide range of industries. The fund is expected to invest in a portfolio of value and growth stocks across established and emerging business models. The fund’s investment objective is to achieve long-term and risk-adjusted capital appreciation.

Ajit Joshi, MD and Head of Public & Private Markets at SHUAA Capital said, “The Gulf Cooperation Council (GCC) nations have emerged as powerful forces in the worldwide economy, fuelled by their dedication to diversification and enterprising development strategies. 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. The Saudi Equity Fund offers timely avenues for investors to take advantage of the region’s growth potential and diversify their portfolios.

The fund also offers an option to receive periodic dividends through a separate dividend share class. The Qualified Investor Fund will be open for subscribers through the Allfunds bank, a leading investment distribution platform, or via direct subscriptions.