Saudi Kuwait Finance House launches its first investment fund in Saudi Arabia

Riyadh—Amlak
The Saudi Kuwaiti Finance House has launched its first investment fund, the “KFH Initial Public Offering Fund” denominated in Saudi riyals, which aims to achieve absolute returns and capital growth by providing investors with the opportunity to invest primarily in the shares of public companies during their initial public offering (IPO) period or in the shares of newly listed companies that have been listed on the stock market for less than three years.
For his part, Eng. Tariq Al-Rakheimi, CEO of ”Saudi Kuwaiti Finance House,” that the Saudi market is one of the largest in the region and a promising one. “In our commitment to providing the best investment opportunities for our clients, we have launched the KFH Initial Public Offerings Fund, which seeks to achieve its objectives by investing up to 90% of its net assets in common stock during the period of the initial public offering (IPO) period and in shares of newly listed companies that have been listed on the Kingdom’s markets for less than three years.” He emphasized that all companies in which the fund will invest will comply with the Sharia guidelines approved by the fund’s Sharia Committee.
Al-Rakheimi explained that the fund serves as an open-ended collective investment program designed for investors seeking to achieve real returns that rival those generated by other products that invest in listed stocks in general, emphasizing that the fund offers investors the opportunity to capitalize on the significant growth potential available in startups and emerging companies.
It is worth noting that Saudi Kuwaiti Finance House is a closed-end Saudi joint-stock company with a fully paid-up capital of 500 million riyals, owned by Kuwait Finance House, and is licensed by the Capital Market Authority to act as a principal and to underwrite, manage, arrange, custodian, and provide advisory services regarding securities in the Kingdom.
The Kuwait Finance House Group is one of the largest Islamic banks in the world, with assets exceeding $55 billion, and has extensive experience in managing portfolios and funds of all types, including equity funds, real estate funds, murabaha funds, and others. Kuwait Finance House has an extensive network of banks spanning Kuwait, Turkey, Malaysia, Bahrain, and Jordan, and Germany. In the Kingdom, it owns KFH Real Estate Company, with a capital of 2.5 billion riyals, in addition to the Saudi Kuwaiti Finance House.