SNB Capital GCC Petrochemical Sector Fund

While most Shariah compliant public equity funds lean on diversified holdings and liquidity buffers, the SNB Capital GCC Petrochemical Sector Fund adopts a more concentrated exposure to Gulf petrochemical equities.

The fund allocates a minimum 60% of its assets for investments in petrochemical companies listed on the Saudi and regional GCC main stock markets, including IPOs and rights issues. For the Saudi parallel market Nomu, a 10% cap applies for such investments.

“This fund is not a diversified equity play, it’s a pure bet on the structural profitability of the Gulf’s petrochemical sector,” said fund manager SNB Capital. “The allocation rules are strict by design to reflect our thesis that this sector continues to underpin regional industrial development.”

Of the remainder, up to 30% can be invested in other Saudi markets-listed equities. A 35% limit applies for holdings in cash, Sukuk, public money market funds or public debt instruments while the fund can have up to 40% of assets placed in other investment funds.

Launched on the 10^th December 2024, this open-ended public equity fund was listed on Tadawul from the 26^th March 2025. It has a high-risk classification and is built for long-term capital growth, with a benchmark tied to the SNBC GCC Petrochemical Sector Index.

Performance-wise, the fund’s unit price spiked temporarily after Israel launched missile strikes on Iran over 12 days from the 12^th June 2025 – but has since returned to status quo of just below 10 NAV per unit. The fund is predicated on the Saudi riyal.

The actively-managed fund does not distribute income to unitholders. Instead, any capital gains and dividends are automatically reinvested within the fund. This reinvestment policy is designed to reflect returns through growth in the fund’s NAV and unit price over time.

Shariah financing of up to a year is allowed for this fund to cover redemptions, pledging no more that 14% of NAV.

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

• Source: SNB Capital