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Assets of Saudi Public, Private Investment Funds Amount to $86.1 Bn

Assets of Saudi Public, Private Investment Funds Amount to $86.1 Bn
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Assets of Saudi Public, Private Investment Funds Amount to $86.1 Bn

Assets of Saudi Public, Private Investment Funds Amount to $86.1 Bn

The value of public and private assets of investment funds in Saudi Arabia registered a new leap during Q2 2019, amounting to SAR323 billion ($86.1 billion), compared to SAR310 billion ($82.6 billion) in Q1 of the same year.

According to Saudi Capital Markets Authority (CMA), the value of public and private funds’ assets jumped by 4.1 percent in the Q2 2019 while the value of the private investment funds’ assets grew by 3.5 percent, and the value of public fund assets grew by 5.3 percent.

The value of the assets of private investment funds amounted to SAR196.9 billion ($52.5 billion) at the end of Q2 2019 compared with SAR190.1 billion ($50.6 billion dollars) in the first quarter.

Meanwhile, the value of assets of public investment funds amounted to SAR126.1 billion ($33.6 billion) by the end of Q2 2019 compared with SAR119.7 billion ($31.9 billion) in Q1 2019.

According to the CMA, the investment fund includes a set of securities that are selected according to specific criteria that meet the objectives of the investment funds, including the public and special funds.

Profits of the investment funds come usually from capital gains, which are the profits resulting from the improvement or change in the prices of the securities invested in addition to dividend profits, if any, for securities.

In this context, foreign investments by non-founders in the Saudi stock market rose to 5.1 percent of the total market last week compared to 5.03 percent at the end of the previous week.

This rise is due to net purchases amounting to SAR712.7 million ($190 million) made last week.

Therefore, non-founder foreign investors' ownership in the Saudi stock market has continued to record all-time highs. This ownership includes swap agreements, eligible and residing investors and excludes the founders’ strategic shares.

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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.