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.



Saudi Energy Minister Announces New 8 Arabian Oil, 6 Natural Gas Discoveries

Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. Reuters file photo
Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. Reuters file photo
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Saudi Energy Minister Announces New 8 Arabian Oil, 6 Natural Gas Discoveries

Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. Reuters file photo
Saudi Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz. Reuters file photo

Minister of Energy Prince Abdulaziz bin Salman bin Abdulaziz announced that the Saudi Arabian Oil Company -Saudi Aramco- has discovered fourteen Arabian oil and natural gas fields and reservoirs in Eastern Region and the Empty Quarter. The discoveries include six fields and two reservoirs of Arabian oil, as well as two fields and four reservoirs of natural gas.
The minister extended his congratulations to Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and His Royal Highness the Crown Prince and Prime Minister on these discoveries, expressing his wishes for continued growth, development, and prosperity for the Kingdom of Saudi Arabia and its people, SPA reported.
Prince Abdulaziz stated that "Jabu" oil field has been discovered in Eastern Region, following the flow of Arabian Extra Light Oil in "Jabu-1" well at a rate of 800 barrels per day (bpd). "Sayahid "oil field was also discovered, where Arabian Extra Light Oil flowed in "Sayahid-2" well at a rate of 630 bpd. Additionally, "Ayfan" oil field was discovered, where Arabian Extra Light Oil in "Ayfan-2" well flowed at a rate of 2,840 bpd, with 0.44 million standard cubic feet (MMscf) of associated gas per day. Furthermore, "Jubaila" oil reservoir has been discovered in "Berri" field after Arabian Light Oil flowed in " Berri-907" well at a rate of 520 bpd, associated with 0.2 MMscf of gas per day. In addition, "Unayzah-A" oil reservoir was discovered in "Mazalij" field after the flow of Arabian Super Light Oil in "Mazalij-64" well at a rate of 1,011 bpd, along with 0.92 MMscf of associated gas per day.
In the Empty Quarter, "Nuwayr" oil field has been discovered after the flow of Arabian Medium Oil in "Nuwayr-1" well at a rate of 1,800 bpd, with 0.55 MMscf of associated gas per day. Additionally, the oil field "Damda" was discovered, where Arabian Medium Oil flowed in "Damda-1" well at a rate of 200 bpd from "Mishrif-C" reservoir, while Arabian Extra Light Oil flowed from "Mishrif-D" reservoir in the same well at a rate of 115 bpd. Also, the discovery of "Qurqas" oil field was confirmed after Arabian Medium Oil flowed in "Qurqas-1" well at a rate of 210 bpd.
For natural gas, the minister of energy announced the discovery of "Ghizlan" gas field in Eastern Region, where gas flowed in " Ghizlan-1" well at a rate of 32 MMscf per day from "Unayzah B/C" reservoir, with 2,525 barrels of condensate. Also, "Araam" gas field was discovered after gas flowed in "Araam-1" well from "Unayzah B/C" reservoir at a rate of 24 MMscf per day with 3,000 barrels of condensate.
"Qusaiba" unconventional gas reservoir was also discovered in "Mihwaz" field in Eastern Region, where gas flowed in "Mihwaz-193101" well at a rate of 3.5 MMscf per day, with 485 barrels of condensates.
In the Empty Quarter, "Arab-C" gas reservoir was discovered in "Marzouq" field, where gas flowed in "Marzouq-8" well at a rate of 9.5 MMscf per day. The same well also resulted in the discovery of "Arab-D" gas reservoir, after the flow of gas at a rate of 10 MMscf per day. Additionally, the "Upper Jubaila" gas reservoir was discovered from the same well, where gas flowed at a rate of 1.5 MMscf per day.
Finally, Prince Abdulaziz stressed on the importance of the added value that these discoveries represent, solidifying the Kingdom’s leading position in the global energy sector, and reinforcing its rich hydrocarbon potential. Citing that such discoveries will lead to opening new horizons for the Kingdom’s economic development and strengthening its ability to meet both domestic and global energy demand efficiently and sustainably for decades to come. These discoveries will also support sustained economic growth and prosperity, in line with Vision 2030 and Saudi Arabia’s ambitious goals to fully harness its natural resources and enhance global energy security.