Alkhabeer Capital records a total operating income of SAR 187 million for 2017

4 April 2018

Alkhabeer Capital records a total operating income of SAR 187 million for 2017

Assets under management grow by 8 percent to SAR 4.8 billion

Jeddah, Saudi Arabia – 03 April 2018: Alkhabeer Capital, the Jeddah-based asset manager specializing in alternative investments, announced today its financial results for the fiscal year 2017. The company closed the year with assets under management (AUM) of SAR 4.8 billion, an increase of 8% over 2016. Total operating income and net revenue for the year were SAR 187 million and SAR 61 million respectively, a decline of 10% and 14% respectively from last year. This was mainly due to a devaluation of Alkhabeer Capital’s real estate portfolio, which reflects the downward trend in regional and international real estate markets.

Announcing these results, the Chairman of Alkhabeer Capital, Mr. Musaad Mohammad Saad Aldrees, said: “On behalf of the Board of Directors, I am pleased to confirm that in the context of a very challenging year for our industry, Alkhabeer Capital’s results for 2017 are broadly satisfactory. We have made excellent progress in diversifying our business portfolio and product offerings, and our primary objective remains unchanged – to ensure that our shareholders achieve the long-term outcomes that they expect.”

Mr. Ammar Ahmed Shata, Alkhabeer Capital’s Executive Director, added: “2017 will be remembered as the year that Saudi Arabia’s economy experienced the full impact of its transformation, which will present key opportunities in 2018 and beyond. We believe Alkhabeer Capital has the focus and capabilities to meet the emerging challenges and opportunities that this evolving environment brings.”

Mr. Ahmed Saud Ghouth, Alkhabeer Capital’s Chief Executive Officer, also noted: “The first half of 2017 saw the continuation of the volatile global market conditions, geopolitical tensions, and deep uncertainty that were heralded by 2016. Although the global economic outlook improved moderately in the second half of the year, this did little to improve market performance and investor sentiment. Looking ahead, although challenges might persist, Alkhabeer Capital is well placed to adapt, and we remain committed to identifying and creating new investment opportunities that fit within our overall risk-return profile for our clients and shareholders.”

Ghouth added: “During the year, we launched the Alkhabeer GCC Opportunity Fund and Alkhabeer Opportunity Fund II, while we restructured our Alkhabeer Real Estate Residential Development Fund II following the significant changes in the Saudi real estate market. Also, we established the Alkhabeer Industrial Private Equity Fund III.”

It is worth mentioning that Alkhabeer Capital has won numerous awards and accolades for its business. The company was named Best Private Equity Company in Saudi Arabia by Banker Middle East at its annual Industry Awards. It also received recognition for its Sharia-compliant offering, earning the award of Best Islamic Investment Fund by Islamic Business & Finance magazine. Alkhabeer also has been named one of the best workplaces in Saudi Arabia by the Great Place to Work® Institute, ranking first amongst investment companies and eighth overall.

Chairman Aldrees concluded: “I would like to take this opportunity to thank our Board of Directors for their contribution to our company. I am also grateful for the enormous progress made by our senior management staff, and I must of course thank our teams for their unbridled commitment. Finally, I would like to recognize and thank our shareholders for their continued patience and support. We look forward to the challenges and rewards of a busy year ahead.”