Dubai-based Dalma Capital has announced the launch of Quencia Saudi Equity focused on investing in the Tadawal.
The fund aims to generate medium to long term capital appreciation and to maximise total return relative to Tadawal All Share Index (TASI) index.
Dalma said the fund’s seed capital of SAR 100 million is a reflection of investors’ confidence in the fund’s team and structure, according to ArabianBusiness.
The fund emphasised the economic and social transformation which Saudi Arabia is undertaking as part of its Vision 2030, a business move intended to diversify the MENA region’s largest economy away from dependence on oil.
The Saudi equity market is by far the largest and most liquid in the MENA region with market capitalisation of SAR 1.7 trillion and an average daily turnover of SAR 3.3 billion, according to Delma website.
Dalma Capital, added that it is well positioned to capture the one-off opportunity presented by the largest remaining market to achieve Emerging Market (EM) index inclusion, which may result in around $50 billion of foreign inflows into Saudi equities, Arabian Business reported.