SHUAA Capital Launches Sharia-Compliant Fund with Focus on Saudi Arabia

Dubai-based SHUAA Capital, the leading asset management and investment banking platform in the region, announced the launch of a new Sharia-compliant fund under the Incorporated Cell Company umbrella, domiciled in Abu Dhabi Global Market (ADGM) and managed by SHUAA GMC Limited, the wholly- owned regulated subsidiary of SHUAA.

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 (HNWI) 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 member states of the Gulf Cooperation Council (GCC).

The new equity fund will be managed and typically invest across a wide range of industries. The fund is expected to invest in a portfolio of value and growth stocks across a combination of established and emerging business models.

The investment objective of the fund is to achieve long-term and risk-adjusted capital appreciation. The fund also offers an option to receive periodic dividend 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.

SHUAA established the ICC fund structure in ADGM in 2020 to launch differentiated fund strategies under the ICC platform to tap into asset classes such as equities, sukuk and multi- asset strategies across strong and resilient economies.

With the launch of the SHUAA Saudi Equity Fund, the ICC platform now offers six diversified funds, including the SHUAA Global Sukuk Fund, SHUAA Global Equity Fund, SHUAA North America Equity Fund, Nujoom Aggressive Fund and Nujoom Balanced Funds. The assets under management (AuM) of the ICC platform has crossed $350 million. SHUAA GMC is the investment manager of the six funds under the ICC umbrella.

Timely Avenues for Investors

Ajit Joshi, Managing Director, and Head of Public & Private markets at SHUAA Capital, said that 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,” Joshi added.

Besides SHUUA Saudi Equity Fund, there are 284 equity funds that are active in Dubai and prominent among them include Alpewn Capital (ME) fund, Blackstone, the Carlyle Group, KKR, Ares Management, Emirates NBD Capital Management Ltd, and Brookfield Asset Management.

According to a report, the top 10 investment management funds in the Emirates manage close to $380 billion.

With $517 trillion of private wealth in Dubai, the highest in any Middle Eastern city, there continues to be strong interest from global and regional asset management firms to set up shop in the emirate and specifically in Dubai International Financial Centre (DIFC), the report said.