Alkhabeer Launches $400M Investment Plan

The Jeddah-based investment and asset management firm Alkhabeer Capital has announced a new investment program worth $400 million. It will raise three funds, one of them being the first targeting investments outside the MENA region. The firm will raise SAR 525 million for the funds and an additional SAR 125 million for a residential development fund in the United Kingdom.

Two of the funds are a residential development fund worth SAR 150 million and an industrial property development fund for SAR 250 million, both based in Saudi Arabia.

The firm historically invests on behalf of high-net worth Saudi Arabians, family offices and institutions, and institutions from elsewhere in the Gulf that are interested in its sharia-compliant vehicles.

AlKhabeer is currently fully invested in previous development funds targeting Saudi Arabia, called Alkhabeer Land Development Fund I with SAR 290 million and Alkhabeer Land Development Fund II with SAR 774 million.

Director of asset management Sherif Selim said, “The firm remains bullish about Saudi Arabian real estate. We believe that Saudi is and will remain the market with the most potential amongst the other GCC countries for many reasons: Saudi Arabia is the largest country in the GCC with strong business fundamentals and robust economic growth forecasts, which all combined make it a very attractive market place to investors.”

Regarding his firm’s new foray into international markets, Selim added, “We are considering more mature markets such as the US and Europe and we are in the process of identifying which markets we will tackle next and how.”

Alkhabeer Capital saw several positive indicators in 2011 and is likely to keep up the growth through 2012. It posted 18 percent growth in revenues, reaching SAR 64.6 million in 2011 compared to SAR 54.8 million the previous year. Net profits increased 74 percent to SAR 19.1 million in 2011, driven by a rise in assets under management (AUM) and strong investment returns, along with a net profit margin of 30 percent, up from 20 percent in 2010.

The firm also reported this year that its client base had increased by 247 percent. CEO Ammar Shata said at a general meeting, “We have started 2012 very well and are committed to providing our client base with innovative Sharia-compliant investment products and services that focus on the global and local capital markets, real estate, and private equity sectors. We are well positioned for steady long term growth, driven by the demand for quality Sharia-compliant investment solutions.”

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