JEDDAH — Alkhabeer Capital, a leading asset manager specializing in alternative investments, posted seventh consecutive year of record financial performance in fiscal year ended Dec. 31, 2016.
In a statement released on Monday, Alkhabeer Capital said its total operating income increased by 16 percent to SR207 million, while net income grew by 6 percent to SR71 million. At the end of December 2016, total assets had increased to SR1.61 billion, up 16 percent from the end of the previous year. Shareholders’ return on equity continued its upward trajectory to reach 8 percent. Total assets under management grew by 10 percent to SR4.4 billion, while the return on investment raised to 12.6 percent.
Announcing the results, Chairman of Alkhabeer Capital Musaad Mohammed Aldrees said: “Given the continuing backdrop of economic uncertainty, market volatility and geopolitical tensions, which adversely affected investor sentiment during the year, this constitutes a significant achievement. Based on these results, the Board of Directors will be discussing a proposal of dividend distribution to shareholders, which will mark the fourth consecutive year of dividends to be paid by Alkhabeer Capital, and recognizes the unwavering loyalty and support of our shareholders.”
Ammar Shata, Alkhabeer Capital’s Executive Director, added: “During 2016, we made excellent progress towards implementing our strategy that is focused primarily on alternative investment asset management. Underpinned by our two key pillars, real estate and private equity, the strategy of Alkhabeer Capital is aligned with a selection of key target sectors included in Saudi Arabia’s 2030 Vision and the National Transformation Plan 2020. These include education, healthcare and religious tourism. Moreover, the strategy addresses the changing risk appetite of investors in today’s highly volatile economic environment.”
Ahmed Ghouth, Alkhabeer Capital’s Chief Executive Officer, noted: “These achievements illustrate the success of our business teams to respond proactively to changing market dynamics and clients’ needs. As a result of their focused efforts, we achieved a 10 percent increase in client participation in the company’s investment funds, successfully raising a record SR588 million through private placements. We also expanded our client base by 17 percent, including a significant increase in institutional clients such as local investment firms and regional banks; and increased discretionary portfolio management accounts by 28 percent.”
Ghouth added: “Notable business achievements during 2016 include structuring and offering the private placement Alkhabeer Saudi Real Estate Income Fund 1; finalizing the structuring of the private placement Alkhabeer Hospitality Fund 1; acquiring another school with which to augment the Alkhabeer Education Private Equity Fund 1 – close-ended private funds, which were offered in line with the Investment Fund Regulations of the CMA; – while also executing a number of complete and partial investment exits. In addition, the company developed its fund administration, custody and operations capability, having recognized the opportunity afforded by the new custodianship regulations issued by the Capital Market Authority.”
Moreover, he said: “Throughout the year, Alkhabeer Capital continued to enhance its institutional capability, with particular focus on prioritizing the effective utilization of human resources in key revenue-generating areas and critical back office functions. The company’s success in developing a conducive working environment was recognized by inclusion in the prestigious annual Great Place to Work Awards for the seventh consecutive year. Alkhabeer Capital was ranked as the number one financial services institution and local company in Saudi Arabia, and fourth overall among all companies in the Kingdom; and for the first time, was included in the Top 25 Best Workplaces in Asia, in the SME category”
Looking ahead, Shata further said: “We expect 2017 to be another highly challenging and unpredictable year, with the headwinds that rocked the region in 2016 continuing unabated, fueled by ongoing concerns and greater uncertainty. However, based on our solid achievements in 2016 and recent years by our high-caliber teams, we remain cautiously optimistic about the future prospects for Alkhabeer Capital.”
Aldrees concluded: “On behalf of the Board of Directors, I would like to express my sincere appreciation to the company’s shareholders, clients and business partners for their continued loyalty, support and encouragement; to the Kingdom’s Capital Market Authority for its constructive guidance; and to the management and staff of Alkhabeer Capital for their dedication, commitment and professionalism in another highly successful.”