SEDCO Capital plans more Islamic funds

SEDCO Capital plans more Islamic funds
Updated 03 April 2013

SEDCO Capital plans more Islamic funds

SEDCO Capital plans more Islamic funds

DUBAI: Jeddah-based investment firm SEDCO Capital aims to expand its range of Islamic funds to more than 15 by year-end, a sign of improving financial market sentiment and changing investor attitudes in Saudi Arabia.
The plan adds momentum to the Gulf's Islamic funds industry, which has been hurt by the global financial crisis but is now attracting regional firms such as Qatar's QInvest, which aims to launch 30 funds.
SEDCO Capital, a fully owned subsidiary of SEDCO Holding, intends to raise assets under management on its Luxembourg fund platform to $ 1.6 billion by year-end from $ 1 billion now, said Chief Executive Hasan Al-Jabri.
"We plan to expand our range of asset classes and will be introducing products in commodities, real estate and private equities," Al-Jabri said. "We have definitely seen growth in asset management companies setting up in Saudi Arabia."
Saudi-based firms Aljazira Capital, Alkhabeer Capital, KSB Capital, MEFIC Capital, Al-Rajhi Capital and Alawwal Capital launched Islamic funds in 2012.
SEDCO Capital now has seven Islamic funds in Luxembourg, Al-Jabri said. In May and July last year, it launched five Islamic funds including a rare REITs (Real Estate Investment Trusts) fund, which invests in income properties that are listed on stock exchanges around the world.
Product demand is being fuelled by Saudi investors' increasing interest in sukuk (Islamic bonds), Al-Jabri said.
Last month, the firm launched an Islamic fixed income fund with an initial $ 100 million alongside an Islamic global equity fund with $ 150 million, both using Credit Suisse as investment manager.
The fixed income fund invests in Islamic money market instruments, with up to 40 percent of its assets in sukuk. The sukuk can be Southeast Asian as well as Gulf issues, a rare mandate because Gulf-based Shariah scholars have traditionally shunned sukuk from Malaysia, a major Islamic finance market.
Some Gulf scholars argue that the way in which some sukuk are traded in Malaysia is at odds with Islamic principles, which ban monetary speculation.
However, Gulf scholars have also approved products that are just as contentious; Saudi Arabia is one of the largest markets for commodity murabaha, a common cost-plus-profit arrangement.
In order to provide a unified view of Shariah compliance, the SEDCO Capital funds are approved by a panel of three religious scholars from Malaysia, Bahrain and Saudi Arabia, Al-Jabri said.
FROM: REUTERS


Saudi Arabia’s Amkest Group signs deal with US green energy firm

Amr Khashoggi, Chairman of Amkest Group and Scott Poulter, Chief Executive of Pacific Green Technologies
Updated 05 December 2020

Saudi Arabia’s Amkest Group signs deal with US green energy firm

Saudi Arabia’s Amkest Group signs deal with US green energy firm
  • Its expansion into Saudi Arabia through this joint venture is no surprise since the Kingdom is aiming for 30 percent of its energy to come from renewable sources by 2030

RIYADH: US-based Pacific Green Technologies Inc. (PGTK) has signed a joint venture agreement with Amr Khashoggi Trading Co. Ltd. (Amkest Group) to incorporate a company in Saudi Arabia for the sale of Pacific Green environmental technologies.
Amkest Group, founded in 1983, has a history of success in the Kingdom. Its diverse business portfolio includes construction material production and supply, property development and consulting services.
Commenting on the partnership, Scott Poulter, PGTK’s CEO, said: “Saudi Arabia under its Vision 2030 strategic framework, which calls for 9.5 GW of the Kingdom’s energy to be supplied through renewables by 2030, is set to undergo rapid growth.”
Poulter added: “Pacific Green’s technologies, particularly in the solar power, desalination and battery energy storage system sectors, provide the perfect solution to the Kingdom’s growing demand, and we are excited to leverage Amkest Group’s hard-earned relationships to contribute toward the goals of Vision 2030.”
Amr Khashoggi, chairman of Amkest Group, said: “We believe the combination of our experience and knowledge of the Saudi market, coupled with Pacific Green’s portfolio of technologies, provides the foundation for an incredible partnership and the opportunity to offer multiple complementary technologies.”
Pacific Green is focused on addressing the world’s need for cleaner and more sustainable energy. Its expansion into Saudi Arabia through this joint venture is no surprise since the Kingdom is aiming for 30 percent of its energy to come from renewable sources by 2030.
The deal comes on the back of an expectation that Saudi Arabia will attract more than $20 billion in investments in renewables over the next decade. This forecast was made by the CEO of Saudi National Grid in October, according to a report by S&P Global.