Morgan Stanley Allows Foreign Investors in Saudi Equity Fund

Morgan Stanley Allows Foreign Investors in Saudi Equity Fund
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Morgan Stanley Allows Foreign Investors in Saudi Equity Fund

Morgan Stanley Allows Foreign Investors in Saudi Equity Fund

Morgan Stanley Investment Management Inc. announced Tuesday launching a Saudi Equity Fund (MSINVF) in Luxembourg.

It described the step as “positive” and indicates the growth of the local asset management sector in the kingdom.

The MSINVF Morgan Stanley Saudi Equity Fund will give foreign investors access to the company’s on-ground investment team, who have experience in the local market, the bank said in a statement.

Founded in 2009, the fund aims to provide long-term capital appreciation and growth by investing in securities listed on the Saudi Stock Exchange (Tadawul) and in securities offered in the course of an initial public offering in the kingdom.

“We are confident that this launch will create great interest amongst investors and support the attraction of capital inflows into Saudi Arabia as it continues to diversify its economy in line with the Vision 2030,” said Najmul Hasnain, head of Morgan Stanley’s Saudi equity team.

“Our active investment strategy aims to determine attractive returns for our investors by analyzing the data of the listed companies and their operating sectors, as well as the Saudi economy in general.”

Sammy Kayello, chief executive of Morgan Stanley’s Middle East and North Africa unit, said, “Saudi Arabia continues to be one of the most promising capital markets in the Middle East having seen the introduction of a number of significant market initiatives that are expected to drive an increase in company listings.”

Meanwhile, CEO of Morgan Stanley Saudi Arabia Abdulaziz al-Ajaji told Asharq Al-Awsat that the bank looks forward to supporting its international investors by launching the (MSINVF) fund, especially in Europe.

“We seek to continue developing the investment management sector in the kingdom, and the fund will play a major role in achieving that goal.”

Asked about the sectors on which this fund will focus, Ajaji said the team’s strategy focuses on investing in the attractive opportunities presented by the market, regardless of the sector.

The team considers several basic components in the companies the fund owns, he explained.

These include an experienced management team, effective participation by major shareholders, strong sustainable businesses capable of increasing profitability and an attractive assessment compared to similar companies.

Accordingly, “our portfolio is currently focused on education, healthcare, construction materials and companies active in the retail sector.”

Regulatory changes, some of which are incorporated in the Vision 2030, have been a major catalyst in facilitating international investors’ access to local financial markets, Ajaji noted.

Since announcing its Vision 2030, the kingdom has made great strides in developing its local economy and financial markets, he affirmed.

Ajaji pointed to the challenges and obstacles Saudi Arabia has encountered, including the COVID-19 pandemic and the implications of low oil prices on its economy.

“However, it continues to develop its private sector and improve its local financial markets,” he said.



Industries in Oman, Netherlands, Germany Strike Deal for Liquid Hydrogen Import Corridor

An Hydrogen H2 logo is pictured at Hyvolution exhibition in Paris, France, February 1, 2024. REUTERS/Benoit Tessier/File Photo
An Hydrogen H2 logo is pictured at Hyvolution exhibition in Paris, France, February 1, 2024. REUTERS/Benoit Tessier/File Photo
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Industries in Oman, Netherlands, Germany Strike Deal for Liquid Hydrogen Import Corridor

An Hydrogen H2 logo is pictured at Hyvolution exhibition in Paris, France, February 1, 2024. REUTERS/Benoit Tessier/File Photo
An Hydrogen H2 logo is pictured at Hyvolution exhibition in Paris, France, February 1, 2024. REUTERS/Benoit Tessier/File Photo

Major industrial groups from Oman, the Netherlands and Germany have signed an agreement for the development of the world’s first liquid hydrogen import corridor, Tata Steel Nederland said on Wednesday.
The corridor will link the port of Duqm in Oman, the port of Amsterdam in the Netherlands and key logistics hubs in Germany, including the port of Duisburg, the group said in a statement, Reuters reported.
It aims to enable the import of renewable fuel of non-biological origin (RFNBO) compliant liquid hydrogen to Europe, it added.
"In our role as a large potential buyer, we can contribute to the development of a sustainable economy based on green hydrogen in our region," said Hans van den Berg, the CEO of Tata Steel Nederland.
The agreement was signed by eleven parties in total, including Oman’s global integrated energy group, Tata Steel Nederland, the port of Amsterdam and Germany's Hamburger Hafen und Logistik.
It includes several infrastructure projects along the corridor, notably export and import facilities in the ports of Duqm, Amsterdam and Duisburg, as well as pipe and rail networks for the transport of gaseous and liquid hydrogen.
The deal was signed during the visit of the Sultan of Oman to the Netherlands.