ABIB owns the majority of shares of the newly launched company.
ABIB Chairman Khaled Al-Zayani, while underlining the importance of the business model of the newly launched firm, said it would focus on four areas including asset management, principal investment, investment banking, and custodial services — all supported by centralized advisory, research and business development capabilities.
"We aspire to be Saudi Arabia's pre-eminent provider of investment offerings to pension funds, foundations, charity organizations, endowments, private and public companies, high-net worth individuals, and family offices," Al-Zayani said in a statement.
"We have an extensive base of investors, both within the Kingdom and regionally, seeking specially tailored services and truly innovative Shariah-compliant investment products."
Adnan Ahmed Yousif, president and chief executive of Al-Baraka banking Group and the vice-chairman of Al-Baraka Islamic Bank, termed the Itqan Capital launch as an excellent move that reflects ABG's strategy to enter key regional markets, especially Saudi Arabia which is the largest Arab economy with strong fundamentals and a stable financial and investment environment.
"Saudi Arabia being the largest economy in the region offers significant business and investment opportunities for Itqan Capital," he added.
"We look to this step as a strategically vital initiative for the group," he added.
“Our founding shareholders have a strong base in the Saudi market so the launch of the company will strengthen that presence,” he said.
He said the Saudi market represents a key enter-point for us to access the extensive base of investors and provide them with a wide range of Sharia compliant products that have been developed by the company and the group for the past many years.
The ABG Group has the unique advantage of a large and geographically diverse network in many countries, whose experience and track record we will draw upon to strengthen our business presence in the Saudi market
Mohamed Isa Al-Mutaweh, board member and chief executive officer of ABIB, said Itqan would soon become a new force in the regional investments sector.
“We are acutely focused on serving the needs of a sophisticated clientele who we believe are somewhat under-served at present," he said.
"We have moved away from standard services for the mass-affluent market, such as securities brokerage, towards differentiated and valued added offerings. We intend to create and manage a growing number and broad array of open-end and closed-end funds tailored to the requirements of institutional, corporate, and individual clients."
He added: "As well as private and mutual funds, Itqan Capital will identify, develop, and co-invest in distinctive opportunities in sectors that offer genuine potential for growth and benefit from both a financial and social perspective. Examples are the education, healthcare, and food sectors that are all benefiting from heightened demand due to the region's rapid population growth. Another example of our unique approach is offering custodial services — a first in the Saudi market. Our menu of custody services for real estate, private equity, and portfolio and fund holdings will add outstanding value for our clients," he added.
The authorized capital of ABG is $1.5 billion, while total shareholders' equity amounts to about $1.8 billion.
