Dinar Saudi Equity Fund

Being the latest investment offering to focus on equity performance potentials within the Saudi stock exchanges, the Dinar Saudi Equity Fund reached its minimum SAR5 million (US$1.33 million) subscription target weeks ahead of its initial 31^st May 2025 closing.

While the offering opened on the 1^st April 2025, fund manager Dinar Investment announced that subscriptions had reached SAR6.68 million (US$1.78 million) on the 28^th April 2025 and this fund began operations a day later.

Reflecting strong investor interest in Saudi equities, the NAV for this fund rose over eight-fold to SAR54.77 million (US$14.6 million) as at the 22^nd June 2025.

The open-ended fund targets medium- to long-term capital growth through active investments in Shariah compliant stocks listed on the Main and Nomu (Parallel) markets. The fund may invest in all sectors of listed stocks, as well as in money market funds.

It is benchmarked against the S&P Saudi Shariah Domestic Local Currency Total Return Index, which incorporates reinvestment of dividends as a more comprehensive measure of investment performance than just price changes.

“Our strategy centers on identifying undervalued companies with strong fundamentals and long-term upside,” said the fund manager. “We also see significant potential in IPOs, which are playing a growing role in the Saudi equity landscape.”

With a unit price of SAR10 (US$2.67) and minimum investment of SAR100 (US$26.67), the fund’s focus is on earnings potential spanning a minimum of two years among firms identified as having strong management teams and relatively low valuations.

The fund’s core allocation ranges between 80% and 100% in equities, with up to 20% in Shariah compliant REITs and a maximum of 10% in Islamic money market instruments. All non-equity holdings must be with investment-grade, Saudi-regulated counterparties.

Stock selection is based on bottom-up analysis, with emphasis on earnings resilience, sound governance and growth drivers. “We’re looking beyond index heavyweights, focusing on names with room to grow and the fundamentals to back it,” the fund manager added.

The Dinar Saudi Equity Fund reinvests all income to maximize capital appreciation. It does not distribute dividends. Classified as high-risk, the fund may temporarily raise cash exposure during volatile periods to preserve liquidity.

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