Sadirat’s Haddaj invests SAR 70M in FAAD Industrial Fund

Saudi Industrial Export Co.'s (Sadirat) board of directors approved on Aug. 14 an investment of SAR 70 million in FAAD Industrial Fund through Haddaj Investment, Sadirat’s investment arm.

FAAD Industrial Fund is a closed private equity fund licensed by the Capital Market Authority (CMA) and managed by FAAD Financial Partners Co., the company said in a statement to Tadawul.

The fund aims to achieve capital growth through private equity investments by subscribing to and/or acquiring stakes in target companies operating in the industrial sector.

The investment is expected to have a positive financial impact and align with the company’s broader investment strategy.

The fund’s launch is subject to obtaining all necessary approvals in accordance with CMA regulations, the statement noted.

FAAD Industrial Fund will have a total capital of SAR 220 million, with a duration of five years, extendable for two additional periods of one year each (5+1+1). The fund term will begin from the offering’s closing date. The project’s expected net return stands at 12%.

According to the fund’s terms and conditions, the targeted capital is SAR 220 million. Thus, the closing date will be extended for an additional three months, if the minimum subscription amount of SAR 215 million in cash and/or in-kind contributions is not collected by the fund manager during the offering period.

If the fund manager is unable to raise the minimum targeted subscriptions after making all reasonable efforts, the CMA shall be provided within 10 days with a written notification signed by the fund manager confirming the failure to complete the offering. In addition, subscription along with any returns generated from their investment shall be returned to the unitholders without any deductions.

Sadirat emphasized that this investment seeks to capture industrial sector opportunities in line with the board of directors’ plans to build strategic partnerships and alliances that expand the company’s future business scope and enhance shareholder returns.

This investment strategy is consistent with the updated corporate strategy approved during the ordinary general assembly on May 25, which focuses on growing investments and diversifying income sources to ensure sustainable growth.

The financial impact of the investment is expected to be shown on the company’s financials as of Q1 2026.

According to Argaam data, Haddaj signed in October 2024, a non-binding agreement with FAAD Partners and Nama Chemicals Co.

The agreement aimed for Haddaj and FAAD Partners to establish an investment fund to acquire a stake in JANA (a subsidiary of Nama Chemicals), set the fund’s basic framework, in addition to conducting due diligence and valuation.

In June, Sadirat and Nama announced the signing of a binding agreement by Nama, JANA and FAAD Partners.

Under the agreement, FAAD Partners will inject SAR 200 million into JANA in exchange for acquiring a 40% stake in JANA’s capital through the issuance of new shares by JANA to FAAD Partners.