The Capital Market Authority has approved Alawwal Capital Company's plans to float units of Alawwal Fund for food and health care for public subscription.

The fund will invest in a variety of shares belonged to outstanding companies that operate in food industries and healthcare listed on Saudi and Gulf stock markets.

“Investments through this fund will be for medium- and long-terms and will follow Shariah standards, said Adnan M. Talmisany, managing director and CEO of Alawwal Capital.

“The fund aims at developing capital by investing in major Saudi and Gulf ventures distinguished for sustainable growth,” he said.

Talmisany said the move is significant in light of a big shortage of hospitals despite growing population.

This will certainly increase the demand for healthcare and food products, he added.

Speaking about the fund’s outstanding features, he said it would distribute dividends among investors after every six months, adding that it would be not less than the average annual dividends received from the Saudi bourse.

Alawwal Fund is first of its kind in Saudi and Gulf markets and aims at investing capital in vital sectors.

“It offers to investors real opportunity to benefit from the strong growth of food and healthcare sectors as well as other vital economic sectors in the region,” Talmisany said.