Alinma Free-Style Saudi Equity Fund

The Alinma Free-Style Saudi Equity Fund is aiming to capitalize on the development boom across the GCC region, where the economies are transitioning away from oil revenues to diversify national revenues.

“This fund is designed for investors seeking focused exposure to Saudi growth stories while benefiting from tactical flexibility across the GCC,” explained a representative from fund manager Alinma Financial. “We’ve structured the fund to balance conviction with liquidity management.”

This high-risk open-ended Shariah compliant public equity vehicle is targeting medium- to long-term capital growth through active allocation to listed equities across Saudi Arabia and select Gulf markets.

The fund commenced operations on the 18^th August 2025, earlier than a launch target date of the 9^th September, after meeting its minimum capital requirement of SAR10 million (US$2.67 million). The fund’s NAV stood at SAR29.92 million (US$7.89 million) as of the 19^th September 2025,

The fund primarily invests over 75% of its NAV in Tadawul-listed equities – including IPOs, rights issues and residual shares. It may allocate up to 25% of its portfolio to Nomu-listed stocks, GCC-listed equities and liquidity instruments such as Murabahah transactions and money market funds, allowing the fund manager to respond to changing market conditions and manage risk exposure.

Benchmarked against the Alinma Saudi Equity Index, developed by IdealRatings, the fund strategy sees Gulf market equities evaluated along economic, regulatory and political factors to ensure alignment with the fund’s Shariah and performance goals.

“Our objective is not only capital appreciation but also capital preservation through responsible allocation. We aim to offer investors a disciplined, Shariah-based vehicle that can weather volatility while seeking alpha in high-quality regional equities.”

The product features no early redemption fees and a minimum subscription of SAR1 (US$2.67), ensuring accessibility for both retail and institutional investors. “The reinvestment policy supports long-term NAV growth, aligning with the goals of investors who want to accumulate wealth in a Shariah compliant framework,” the representative emphasized.

The fund adopts a total reinvestment approach – meaning all realized income, including dividends and capital gains, is reinvested back into the fund. No distributions are made to unitholders.

*Disclaimer: The opinions and viewpoints expressed in the Fund Profile do not constitute as recommendations for any fund highlighted. The information presented is not investment advice and should not be treated as such.