16 November 2009
SHUAA Capital Saudi Arabia cjsc (‘SCSA’), announced today that Saudi Arabia’s Capital Market Authority (CMA) has licensed three SHUAA funds in the Saudi market; the SCSA Morabaha Fund; SCSA Saudi Gateway Fund; and SCSA Saudi Islamic Gateway Fund.
The three funds will take a conservative approach to investment and will focus on listed Shariah compliant and conventional Saudi stocks as well as IPOs. Following CMA’s approval, SCSA will announce the timeline to open subscriptions in the three funds for investors.
Sameer Al Ansari, CEO of SHUAA Capital, said: “This announcement is central to SHUAA Capital’s stated strategy to play a significant role in the development of sophisticated asset management products in various sectors in the Saudi market. Despite the global financial crisis and local market volatility, SCSA has continued to consolidate its strong position in the Saudi market and expand its business lines throughout 2009.”
Omar Jaroudi, CEO of SCSA, said: “We are delighted to received CMA’s license for our three funds. This marks another major milestone for our Asset Management business line. SCSA now has three Shariah compliant funds including the SCSA Hospitality Fund, and one conventional fund targeting investments in Saudi listed stocks and IPOs. Our Asset Management division has already launched discretionary portfolio management (DPM) services and finalized its structure for delivering total return swaps (TRS).”
Dr. Mohammed El Guri and Dr. Abdul Satte Abu Ghuddah, who are members of the General Council for Islamic Banks and Financial Institutions, both sit on the Shariah board of SCSA’s Shariah compliant funds including SCSA Morabaha Fund, SCSA Saudi Islamic Gateway Fund, and SCSA Hospitality Fund.
SCSA Morabaha Fund targets providing liquidity and maintaining capital through investing in conservative tools including Murabaha, Ijara, recognized Sukuks, and shariah complaint transactions in KSA and GCC. The SCSA Saudi Islamic Gateway Fund targets long term capital appreciation through investing in Shariah compliant listed Saudi stocks and IPOs, deposits, and other similar Saudi equity funds, whilst the SCSA Saudi Gateway Fund adopts a similar conventional investment strategy.