Dubai’s Dalma Capital launches Saudi equity fund

Dubai-based Dalma Capital Management Limited has launched Quencia Saudi Equity Open Ended PC, the first domiciled fund in Dubai International Financial Centre (DIFC), which focuses on investing in the Saudi stock exchange (Tadawul), the company said in a statement on Tuesday.

Investment in the fund, which has SAR 100 million in seed capital, is available only to professional clients. 

The fund is the first protected cell to be launched under Quencia Open Ended PCC Limited, a qualified investor fund (QIF) structured as a company limited by shares and registered as a protected cell company (PCC) in the major global financial hub for the Middle East, Africa and South Asia (MEASA) region.

The vehicle is a fundamentally driven, long-only Saudi equity fund. It aims to generate medium to long term capital appreciation and maximize total return relative to the TASI index.

It is managed by a team with more than 25 years of collective Saudi market experience, headed by Majed Kabbara, managing director – asset management at Dalma Capital.  

The launch comes at a very interesting time for the market as Saudi Arabia is witnessing a major economic and social transformation and its market is being upgraded to ‘Emerging Market’ status by major global index providers, Kabbara said.  

“We look forward to capitalizing on these opportunities and providing our valued clients superior investment performance and a high level of service in collaboration with our fund partners,” he added.

Zachary Cefaratti, Dalma Capital’s chief executive, said: “We are well positioned to capture the one-off opportunity presented by the largest remaining market to achieve EM index inclusion, which may result in around $50 billion of foreign inflows into Saudi equities.”