OB - Fund for Direct Financing

The fund primarily aims to achieve returns for investors through engaging in direct financing activities that comply with Islamic Sharia principles for technology entities, such as e-commerce stores and emerging tech companies like Saudi tech applications. The financial portfolio that the fund will offer beneficiaries includes working capital financing to support the operational purposes of such entities, such as marketing, inventory support, and other short-term operational expenses.

 

Saudi Riyal

Base Currency

Private Fund - Direct Financing Investment Fund

Fund Category

Shari'ah Compliant         

Shari'ah Compliant         

Minimum of 50 million Saudi Riyals, with a target of 100 million Saudi Riyals

Capital

End of each fiscal year

Evaluation Period

3 years with the option to extend twice for one year each (3+1+1)

Fund Duration

1 Saudi Riyal

Unit Subscription Price

Each investor must subscribe to a minimum of 200,000 units, equivalent to 200,000 Saudi Riyals. Additional units can be subscribed in multiples of 10,000 Saudi Riyals.

Minimum Subscription

A portion of the profits earned during the fund's duration is distributed to unit holders semi-annually, and the Fund Manager may choose to distribute dividends on quarterly basis when profits and cash flows stabilize.

Profit Distribution:

The fund is classified as a high-risk category fund.

Risks