NCB Capital, which claims to run the world’s largest Shariah compliant fund at US$3.93bn, is starting its Ucits range with the NCB Capital Saudi Arabian Equity Fund and the NCB Capital GCC Equity Fund.
The objective of the two funds is to generate long-term capital growth by investing in listed companies in the Saudi Arabian and Gulf Co-operation Council markets in line with Shariah guidelines.
NCB Capital states it will use a mix of strategies covering mid-cap, blue chip, income-generating stocks and a diversified range of selected sectors with growth potential.
These two Shariah-compliant funds will be marketed internationally in conjunction with Amundi, with a focus on institutional investors in Europe and Asia.
Jawdat Al Halabi, chief executive of NCB Capital, said international investors are increasingly looking for new growth opportunities and “nowhere are those better reflected than in the strong companies and sectors that we track in Saudi Arabia and across the Gulf region. With our local knowledge and significant presence we are a natural gateway for international access to a dynamic new market”.
The Saudi equity market has a market capitalisation of US$368bn, accounting for 50% of the GCC equity market and 90% of its trading turnover.
The GCC’s combined market capitalization of US$736bn is around one fifth of the BRIC markets, a fact that is increasingly being recognised by international money managers, NCB Capital stated.
Authorised by Saudi Arabia’s Capital Market Authority, NCB Capital has over a million high net worth clients and $12.1bn under management.
