Sidra Capital, the Shari’ah compliant investment firm regulated by the Saudi Arabian Capital Market Authority announced the continuing strong performance of its Sidra Income Fund, a US dollar-denominated investment fund focused on financing Asian supply chains. The fund has exceeded its annual target net return of 7.75%, delivering, 8.01% and 8.39% respectively in the last 24 months.
Launched in September 2019, the USD50 million Shari’ah compliant fund, aims to capitalize on the infrastructure boom in Indonesia, while aiming to intervene in energy and infrastructure supply chains achieving stable, unlevered high yield return uncorrelated to the Stock Market and global commodity prices.
“The economy of Indonesia is the largest in Southeast Asia, and is one of the leading emerging market economies of the world,” explained Hani Baothman, Chairman of Sidra Capital. “Following 2020’s pandemic-induced recession, rising infrastructure spending and unleashed pent-up demand amid supportive fiscal and monetary policies should sustain investment for the foreseeable future.”
The Sidra Income Fund enjoys a well-defined and secured underlying investment structure, with trade credit insurance provided by highly rated international insurers, and political risk cover provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
Encouraged by the Sidra Income Fund success and looming opportunities in global trend towards increased ownership of electric vehicles (EV), Sidra Capital will be launching a USD100 million fund that will invest in EV-related supply chains. Indonesia is well-poised to harness the trend as it attracts investments from global players for developing EV components manufacturing especially batteries.
