Alkhabeer Capital targets Islamic endowment business

Alkhabeer Capital targets Islamic endowment business
Updated 11 May 2015

Alkhabeer Capital targets Islamic endowment business

Alkhabeer Capital targets Islamic endowment business

JEDDAH: Saudi Arabia-based Alkhabeer Capital said on Monday it had launched an advisory service for structuring and managing the assets of the Islamic charitable foundations known as awqaf.
Alkhabeer, an Islamic investment and advisory firm, becomes one of only a few private sector firms globally to focus on awqaf assets.
The foundations are believed to control tens of billions of dollars worth of assets around the world; Muslims use them to contribute a portion of their wealth, in cash or other forms, to charitable projects such as mosques and schools.
In many cases their management has remained ultra-conservative, unsophisticated or inefficient, meaning they earn low returns on their assets. So in the last few years there have been efforts across Muslim-majority countries to modernize the management of awqaf.
Alkhabeer will target educational institutions, family offices and wealthy individuals that want to establish awqaf, offering the services of asset managers, the firm said in a statement.
The firm was founded in 2004 initially focusing on real estate and private equity transactions, but is now actively developing its capital markets business.
In 2013, Dubai's Noor Investment Group and the Awqaf and Minors Affairs Foundation, a Dubai government body which runs endowments, launched an advisory firm specialising in managing awqaf assets. Regulators in Egypt and Malaysia have also moved to modernise the sector.


Market traders ready to ride ‘Biden bounce’

Market traders ready to ride ‘Biden bounce’
Updated 19 January 2021

Market traders ready to ride ‘Biden bounce’

Market traders ready to ride ‘Biden bounce’
  • "Biden moving into the White House could drive markets into a bull run more sharply than previous inaugurations," a financial expert says

DUBAI: Investors are expecting a “Biden bounce” in global markets following the inauguration on Wednesday of Joe Biden as the 46th US president.

“History teaches us that we can expect the markets to react favorably to the inauguration of a new US president — and this time around it is likely to be no different,” said Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisers, with over 80,000 clients and $12 billion under advisement.

“Indeed, Biden moving into the White House could drive markets into a bull run more sharply than previous inaugurations because it is hoped the incoming administration will bring stability and, possibly, a halt to the uncertainty following the fiercely contested election. 

“Investors will also be buoyed by the $1.9 trillion fiscal stimulus announced by Biden, the Federal Reserve’s willingness to support markets, the new president’s multilateral trade agenda and his plans for stepping up the vaccine rollout. All of this will encourage confidence and optimism,” Green said.

Mazen Al-Sudairi, head of research at Riyadh-based financial services company Al Rajhi Capital, agreed with the optimism regarding a “Biden bounce.”

“One of the important outcomes with Biden is stability in the market. But there is also the stimulus factor coupled with the vaccine that is giving an indication of recovery in the market. This perceived unity in the US will be healthy for the global and Saudi market,” he told Arab News.

However, Green said that investors should be cautious for three reasons: “First, a market rally is going to be difficult to sustain indefinitely due to the enormous economic scarring caused by the pandemic.

“The major long-term headwind is mass unemployment, which is hitting demand, growth and investment on Main Street and which, ultimately, will have to impact Wall Street.

“Second, the new administration will have policies that will have an effect on different sectors of the economy. There will be a readjustment period that needs to be taken into account.

“And, third, not all shares are created equal and stock markets are heavily unbalanced at the moment. A handful of sectors are bringing up entire indexes,” he said.