The open-ended Albilad MSCI Saudi Equity ETF aims to track and simulate the performance of the MSCI Saudi Arabia Domestic Total Market Islamic M-Series Index, following its trading debut on the Saudi Exchange (Tadawul) Main Market on the 21st October 2025.
A representative of fund operator, Albilad Investment (branded as Albilad Capital), said this high-risk offering was developed to “give investors an accessible and transparent way to participate in the Saudi equity market through a product that adheres fully to Shariah standards while minimizing operational complexity”.
Seeking to achieve long-term growth and capital gains, passive strategy yields will be achieved with at least 95% of the ETF’s NAV invested in a basket of shares of companies listed on the Saudi Stock Exchange – with a 5% cap for holdings of investment-grade money market transactions and licensed money market funds for liquidity purposes.
Tracking the benchmark closely, the fund aims to achieve a low deviation (maximum 2% per annum) between its performance and that of the MSCI Index. “The index was chosen for its suitability to the fund's strategy and investment objectives in an effort to reflect the performance of the Saudi market, including all companies with large, medium and small market capitalization.”
Initial subscriptions opened on the 14th October 2025 with the entry set at 100,000 units valued at SAR1 million (US$266,670). The SAR10 million (US$2.67 million) minimum fund target was easily surpassed with SAR316 million (US$84.26 million) raised when the five-day offer period ended.
Following the exchange trading start, fresh purchases at prevailing market prices have a 500,000 unit entry point while subsequent buys will be in multiples of 100,000 units.
With automatic reinvestments, there will be no dividend distributions arising from investing gains of the fund’s assets. As such, the fund is not entitled to borrow nor can the fund manager mortgage the fund's assets to accommodate for liquidity shortfalls.
*Disclaimer: The opinions and viewpoints expressed in the Fund Profile do not constitute as recommendation for any fund highlighted. The information presented is not investment advice and should not be treated as such.
| Albilad MSCI Saudi Equity ETF | |
| Fund manager | Albilad Investment (Albilad Capital) |
| Trading date start | 21st October 2025 |
| Asset class | Equities |
| Base currency | Saudi Riyal (SAR) |
| Initial investment | IPO subscriptions: 100,000 units valued at SAR1 million (US$266,670). Market purchases: Initial 500,000 units, subsequently in multiples of 100,000 units at latest-traded value. |
| Unit base price | SAR10 (US$2.67) |
| Investment objective | To achieve long-term growth and capital gains via a passive strategy of investing in publicly traded Shariah compliant equities in Saudi Arabia |
| Benchmark | MSCI Saudi Arabia Domestic Total Market Islamic M-Series Index |
| Risk profile | High |
| Distribution | None, gains automatically reinvested |
| Management fee | 0.35% |
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