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.



Report: Syrian Officials Plan to Attend IMF, World Bank Meetings in Washington

A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, DC, US, November 24, 2024. (Reuters)
A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, DC, US, November 24, 2024. (Reuters)
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Report: Syrian Officials Plan to Attend IMF, World Bank Meetings in Washington

A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, DC, US, November 24, 2024. (Reuters)
A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, DC, US, November 24, 2024. (Reuters)

Syria's finance minister, foreign minister and central bank chief are planning to attend the annual spring meetings held by the International Monetary Fund and World Bank in Washington, DC this month, four sources familiar with the plans said.

It would be the first visit to the meetings by a high-level Syrian government delegation in at least two decades, and the first high-level visit by Syria's new authorities to the US since former President Bashar al-Assad was toppled in December.

Two of the sources told Reuters it was unclear whether Foreign Minister Asaad al-Shaibani, Finance Minister Mohammed Yosr Bernieh and Central Bank Governor Abdelkader Husrieh had yet received visas to the United States.

Spokespeople for the IMF, World Bank, Syrian foreign ministry and Syrian presidency did not immediately respond to requests for comment.

The other two sources said a high-level meeting focused on reconstruction efforts for Syria could be held on the sidelines of the IMF-World Bank meetings.

Syria has been ravaged by nearly 14 years of a war that was sparked by a deadly crackdown on protests against Assad, with much of the country's infrastructure left in ruins.

The government that took over after Assad was ousted has sought to rebuild Syria's ties in the region and further afield, and to win support for reconstruction efforts.

But tough US sanctions imposed during Assad's rule remain in place. In January, the US issued a six-month exemption for some sanctions to encourage humanitarian aid, but this has had limited effect. Reuters reported in February that efforts to bring in foreign financing to pay public sector salaries had been hampered by uncertainty over whether this could breach US sanctions.

Last month the US gave Syria a list of conditions to fulfill in exchange for partial sanctions relief but the administration of US President Donald Trump has otherwise engaged little with the country's new rulers.

That is in part due to differing views in Washington on how to approach Syria. Some White House officials have been keen to take a more hardline stance, pointing to the new Syrian leadership's former ties to Al-Qaeda as reason to keep engagement to a minimum, according to diplomats and US sources.