After passing regulatory muster with the Saudi Arabian Capital Market authority, Alinma Investment has launched official public operations with licenses to engage in all investment related activities including dealing, managing, arranging, advisory and custody services.
Speaking on the occasion of the launch, Mr. Abdulmohsen Al-Fares, chairman of the board of directors of Alinma Investment, said that time was right for launching the business and the price-to-earnings ratios of local and international companies were suitable for investment. He also noted that governmental, legislative and regulatory support in the Kingdom had created a strong investment environment that made the launch possible.
Mr. Saud Al-Ghoneim, the acting CEO of Alinma Investment, said that company was fully prepared to provide investment services and products that meet the needs and fulfill the aspirations of company partners (clients). He added that Alinma Investment would concentrate its activity, in its first stage of development, on the local market by offering brokerage, trading, fund investment, portfolio management, Sukuk issuance and consultation services to private and public institutions.
Mr. Al-Ghoneim also drew attention to Alinma Investment’s use of state-of-the-art technical systems to deliver its fully Shariah-compliant products and services to partners across the Kingdom with speed and accuracy. He also noted that Alinma Investment would work to fulfill its promise of “fruitful partnership,” which has been adopted as the company’s slogan. He said that products and services would be offered to all segments of society as well as to enterprises and companies in both public and private sectors.
For its launch, Alinma Investment will offer partners two fund options: the Alinma Saudi Stock Fund and the Alinma Liquidity Fund (in Saudi Riyals), both of which are licensed by the CMA. Mr. Al-Ghoneim explained that the Alinma Saudi Stock Fund aimed to diversify investment sources by concentrating on the various industrial and service sectors where revenues are strong and which are compatible with Shariah provisions and controls. The fund is characterized by simplicity and flexibility in carrying out all investment transactions which, in turn, will pave the road for different segments and groups to invest and raise the capital within a framework of planning that carefully balances risk and return for investors.
The Alinma Liquidity Fund allows investors to manage cash flows in their portfolios and to benefit from Shariah-compliant Murabaha prices in the local market.
Partners can participate in both funds without paying subscription fees.
It is worth mentioning that Alinma Investment represents the investment arm of Alinma Bank and that the company’s two funds represent its first actual activities in the local market. Alinma Investment will endeavor to add new products and services in a number of Gulf and local capital markets and welcomes all partners to open investment accounts through a wide range of investment centers throughout Saudi Arabia. Individuals interested in Alinma Investment’s products and services may call the company’s toll-free line, 8004413333, or they may visit Alinma Investment’s comprehensive website, www.alinmainvestment.com.