Riyad Healthcare Equity Fund

The Riyad Healthcare Equity Fund is positioning itself to benefit from the growth of Saudi Arabia’s healthcare sector, as demographic shifts, policy reforms and increased private-sector participation reshape the Kingdom’s medical and life sciences landscape.

“Our strategy is centered on the healthcare sector, while always maintaining strict adherence to Shariah principles,” said the spokesperson for Riyad Capital.

This Shariah compliant, open-ended public equity fund seeks medium- to long-term capital growth by investing primarily in healthcare companies listed on Saudi Arabia’s main and parallel stock markets, with selective exposure across MENA.

The fund focuses on equities of established companies while exploring opportunities in newer or emerging segments. It may also participate in IPOs, giving investors early access to public listings.

Launched on the 9^th December 2025 by Riyad Capital, the fund is denominated in Saudi riyals.

“We construct the portfolio using a combination of fundamental and quantitative analyses, looking at financial ratios, sector dynamics, macroeconomic conditions and relative valuations. Our decisions consider earnings quality, balance sheet strength, growth prospects and market positioning, aiming to identify companies that can sustain performance over time,” said the spokesperson.

At least 60% of the fund’s assets are allocated to Saudi-listed healthcare equities including IPOs and traded rights, with maximum exposure of 100%. Investments in healthcare companies elsewhere in MENA are capped at 10%. Up to 20% may be allocated to ETFs and REITs, with Shariah compliant derivatives used for hedging or performance purposes, subject to a 10% limit.

Between 20% and 40% of assets may be held in Shariah compliant money market transactions and debt instruments. Investments in other fund units are permitted up to 20%, with privately offered funds capped at 10%.

Although the investment process is systematic, the fund manager retains discretion in asset allocation and security selection, particularly during periods of market stress. Performance is measured against the Riyad Healthcare Fund Index, provided by Ideal Ratings, but the fund is not constrained by the index weighting, allowing flexibility in pursuing opportunities that meet its investment and Shariah compliance objectives.

The fund is classified as high risk due to equity concentration, sector focus and IPO exposure. It follows a full reinvestment policy, with no distributions to unitholders.

Units are each priced at SAR10 (US$2.67), with a minimum subscription of SAR100 (US$26.7), and management fees are 1.75% per annum. It is suitable for investors seeking targeted exposure to Saudi Arabia’s healthcare sector and who can tolerate elevated volatility over the medium- to long-term.

*Disclaimer: The opinions and viewpoints expressed in this 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.

Source: Riyad Capital