Al-Awwal Investment: Comprehensive Analysis of the Company and Its Role in the

Al-Awwal Investment is a Saudi institution specialized in asset management and investment funds, operating under the supervision of the Saudi Capital Market Authority. The company was established within the context of significant structural transformations in the Saudi financial sector, where the Kingdom has witnessed a strategic trend in recent years to enhance the role of the private sector in asset management and develop the investment management sector. Al-Awwal Investment was founded following the acquisition carried out by SABB Bank (which later became Al-Awwal Bank) of part of the asset management business from "HSBC Saudi Arabia" in September 2022, in a deal valued at 1.203 billion Saudi Riyals. This acquisition resulted in the transfer of a significant portion of the expertise and workforce from "HSBC Saudi Arabia" to Al-Awwal Investment, providing the company with a strong base of competencies and advanced investment strategies. Today, the company operates as the investment arm of Al-Awwal Bank, focusing on providing asset management services for institutions and individuals, and launching diverse investment funds that include Saudi equities, diversified assets, real estate, and private credit funds. Its operations are conducted in a strict regulatory environment, adhering to all requirements of the Saudi Capital Market Authority regarding licensing, transparency, and disclosure of new product issuance. This regulatory environment has contributed to granting Al-Awwal Investment credibility and trust among investors, especially as it aims to align with the goals of Saudi Vision 2030 related to economic diversification and enhancing the development of the financial sector. Although the company is not listed on the Saudi market "Tadawul", it is very active in issuing investment products and developing advanced financial solutions, making it a key player in the local asset management scene.

Al-Awwal Investment is wholly owned by Al-Awwal Bank (formerly known as SABB Bank), making it the official investment arm of the bank in the asset management sector. This relationship began following the completion of the transfer of asset management operations from "HSBC Saudi Arabia" to Al-Awwal Investment in 2022. The deal included the transfer of assets, investment funds, and the investment team, making the company responsible for managing a significant portion of the portfolios and funds that were previously under HSBC's management. This ownership structure has several important characteristics: First, it provides the company with strong financial and operational support from Al-Awwal Bank, which is one of the leading banks in the Kingdom. Second, it allows the company to benefit from the bank's customer base and offer its products through various bank channels, including branches, digital platforms, and the bank's investment advisors. Third, this relationship ensures the integration of traditional banking services and investment services, allowing clients to easily transfer funds between their bank accounts and investment funds. Additionally, the association of Al-Awwal Investment with a large bank like Al-Awwal enhances investor confidence and strengthens its ability to attract significant capital, as evidenced by the launch of a private credit fund with an initial value exceeding 300 million Riyals in July 2025. However, this structure also means that Al-Awwal Investment is not a publicly traded company, so its shares are not traded in the market, and it does not publish detailed financial data like listed companies. The company is under the direct supervision of the Board of Directors of Al-Awwal Bank and benefits from its expertise in governance and financial management. Overall, the integration between Al-Awwal Investment and Al-Awwal Bank represents a model of cooperation between the banking sector and the asset management sector in Saudi Arabia and is a cornerstone for achieving growth and expansion goals in innovative investment products.

Al-Awwal Investment focuses on providing a wide and diverse range of investment products designed to meet the needs of various investor categories in the Saudi market. Among these products are investment funds that fall into several main types. First, there are Saudi equity funds with high investment flexibility, such as "Al-Awwal Flexible Saudi Equity Fund" and "Al-Awwal Traditional Flexible Saudi Equity Fund," which allow investors to participate in the local stock market according to flexible investment policies that permit adjustments to asset ratios within the fund based on market conditions. Second, the company offers diversified asset funds (Multi-Asset Funds) such as "Balanced Multi-Asset Fund," "Defensive Multi-Asset Fund," and "Growth Multi-Asset Fund." These funds were launched in May 2025 and aim to achieve a balance between returns and risks by distributing investments among equities, bonds, real estate assets, and cash instruments. Third, the company launched a private credit fund (Trust Fund) in July 2025 with a value exceeding 300 million Riyals, aimed at qualified investors and institutions wishing to invest large capital for targeted returns. The company also manages private investment portfolios designed according to client needs and provides investment advisory and risk management services for assets. Al-Awwal Investment's funds have the advantage of obtaining approval from the Capital Market Authority, enhancing their credibility and transparency. The diversity of products reflects the company's ability to attract investors seeking advanced investment solutions, whether individuals or institutions, as evidenced by the expansion of its customer base and its continuous launch of new funds. Overall, the diversity of investment products offered by Al-Awwal Investment is one of its competitive strengths in the Saudi market.

Although Al-Awwal Investment is not a publicly traded company listed on the Saudi stock market, and therefore does not publish detailed financial reports for the public, some financial indicators and major operations provide a clear picture of the company's activity volume. Among these indicators is the company's announcement of launching a private credit fund in July 2025 with an initial investment value exceeding 300 million Saudi Riyals, reflecting its ability to attract large capital and manage substantial portfolios. In June 2025, the company announced its exit from a local real estate investment fund valued at 268 million Riyals, achieving a return of 35%, which is an indicator of the efficiency of real estate asset management and its ability to achieve exceptional returns for investors. Al-Awwal Investment manages several other investment funds in Saudi equities and diversified assets, all of which were issued after careful regulatory approvals. It is important to note that the company does not disclose the total assets under management (AUM) or annual profits publicly, as it is not a publicly traded company. However, the data from approved funds, the volume of exits, and new issuances illustrate the significant operational volume and continuous growth in its activities. Additionally, the financial and operational support from Al-Awwal Bank ensures the company has a high capacity for expansion and innovation in new products. In conclusion, these figures and data indicate the vitality of the company in the market and highlight its position as one of the key players in the Saudi asset management sector, especially with the increasing importance of institutional investment and the diversity of financial products available to investors in Saudi Arabia.

Al-Awwal Investment occupies a strategic position in the Saudi asset management sector, which is witnessing rapid growth due to regulatory changes and support from Vision 2030. This sector belongs to non-banking financial services and includes investment fund management companies, brokerage firms, and private portfolio management companies. Al-Awwal Investment plays a pivotal role in this sector by launching new funds, diversifying products, and attracting capital from both institutional and individual sectors. The company benefits from its relationship with Al-Awwal Bank, which grants it advantages in accessing a wide customer base and facilitating the distribution of investment products through the bank's network. Additionally, the transfer of part of HSBC Saudi Arabia's operations to it has provided accumulated expertise and a professional workforce, enhancing its competitiveness. Al-Awwal Investment operates in a competitive environment that includes major companies such as Al-Ahli Capital, Al-Rajhi Capital, Al-Jazira Capital, and Jadwa Investment, alongside global companies and foreign partners. Although its managed assets may be smaller than some large competitors, it focuses on innovation in products and providing advanced investment solutions that meet the changing market demands. The company also emphasizes governance and compliance with the standards of the Capital Market Authority, which grants it additional confidence among local and foreign investors. Overall, the asset management sector is a cornerstone for diversifying national income sources, and Al-Awwal Investment contributes to it through advanced products and expanding its service offerings, enhancing its role in developing the Saudi capital market.

Al-Awwal Investment faces strong competition from several local and international financial institutions active in the asset management sector in Saudi Arabia. Among these competitors are investment companies affiliated with major banks, such as "Al-Ahli Capital" affiliated with the National Commercial Bank, "Al-Rajhi Capital" affiliated with Al-Rajhi Bank, and "Al-Jazira Capital" affiliated with Al-Jazira Bank. These institutions manage large portfolios and funds and have a long history in the market, enjoying widespread presence and a large customer base. The list of competitors also includes independent companies such as "Jadwa Investment" and "Gulf" and "International," which excel in providing diverse investment solutions and specialized funds. Additionally, global companies like J.P. Morgan and BlackRock have entered the Saudi market through local partnerships or by offering global funds compatible with the local market. The role of pension funds and government institutions, such as the Public Investment Fund and the Industrial Development Fund, cannot be overlooked, as they play a key role in injecting liquidity and moving the market through direct investments or mutual funds. Al-Awwal Investment has a competitive advantage stemming from its close relationship with Al-Awwal Bank, which allows it to benefit from the bank's distribution network and banking services. The acquisition of HSBC Saudi Arabia's operations has also strengthened its competitive position by expanding its managed assets and technical expertise. Despite this, the company's relative size remains smaller than that of giant investment entities, but it compensates for this by focusing on innovation and developing new products that respond to changing market needs.

Al-Awwal Investment has witnessed several significant developments and news during the period from 2024 to 2025, confirming its rising activity in the Saudi market. In July 2025, the company announced the launch of a private credit fund valued at over 300 million Saudi Riyals, targeting to attract large institutional and investment capital. This launch is one of the most notable events of the year, reflecting investor confidence in the company's ability to manage substantial assets and achieve targeted returns. In June 2025, the company announced its exit from a local real estate fund valued at 268 million Saudi Riyals, achieving a return of 35%, highlighting the efficiency of the company's real estate asset management and its ability to seize optimal investment opportunities. Al-Awwal Investment also rebalanced the investment basket of the traded quantitative Saudi equity fund in the same month, indicating its commitment to following flexible strategies that adapt to market changes and actively redistribute assets to maximize returns and minimize risks. The first half of 2025 also saw the issuance of several new funds, including the balanced, defensive, and growth multi-asset funds, in addition to flexible Saudi equity funds. These new issuances came in response to market demands and the diverse needs of investors, showcasing the company's ability to innovate in designing advanced financial products. Press reports from "Argaam" and "Tadawul" track the company's rising activity and its continuous expansion in providing renewed investment solutions. Overall, these developments reflect the ongoing momentum of Al-Awwal Investment in solidifying its position among the leading asset management companies in the Kingdom.

Al-Awwal Investment is fully committed to all requirements of the Saudi Capital Market Authority (CMA) and is subject to strict regulatory systems in all its operations. This begins with obtaining the necessary license to manage investment funds and financial portfolios and extends to complying with the requirement to provide detailed issuance prospectuses for any new investment product, disclosing investment policies, risk levels, fees, and the rights and obligations of investors. The authority imposes high governance standards, requiring the company to form internal oversight committees such as an audit committee, risk committee, and compliance committee to ensure the application of best management practices and transparency. Compliance policies also include adherence to anti-money laundering and counter-terrorism financing regulations, ensuring the protection of investor funds by separating client funds from the company's funds. The company is committed to providing periodic reports on fund performance to investors and to promptly disclosing any significant changes in investment policy or management. The Capital Market Authority also provides mechanisms for grievances or complaints, enhancing the protection of investor rights. These strict policies reflect investor confidence in the products offered by Al-Awwal Investment, as licensing and regulation are among the most important attractions in the Saudi asset management market. Furthermore, the company is committed to providing periodic training programs for its employees on the latest regulatory requirements, ensuring continuous compliance and enhancing team efficiency. In conclusion, governance and compliance policies represent the cornerstone of Al-Awwal Investment's operations and enhance the sustainability of its operations and growth in the Saudi financial market.

Individual and institutional investors can benefit from Al-Awwal Investment products through several official and organized methods. First, investment in the company's funds is made by purchasing units of the available investment funds after reviewing the issuance prospectus for each fund and studying the conditions, fees, and investment policy. Investors can approach the company directly or through branches of Al-Awwal Bank, where consultations are available from the bank's investment advisors to assist clients in selecting products that suit their needs. Subscriptions to the funds can also be made by filling out subscription forms and providing the required documents such as national ID and bank statement, then transferring the investment amount to the fund's account. Some funds offer the possibility of investment through electronic platforms affiliated with the bank or the company, facilitating investors in monitoring their investments and executing purchase or redemption operations digitally. If the funds are traded in the secondary market, investors can purchase fund units through licensed financial brokerage firms in the Saudi market. It is important to emphasize the necessity of reviewing the issuance prospectus for each fund, as it includes details about the minimum investment, subscription and redemption periods, and profit distribution policies. The company also offers managed investment portfolio services for institutional investors or high-net-worth individuals, where a customized investment portfolio is designed according to a specific strategy agreed upon with the client. In all cases, investors must ensure that they are dealing with official and licensed channels, and it is always advisable to consult a licensed financial advisor before making any investment decision.

Al-Awwal Investment funds have recorded remarkable performance in recent years, especially regarding real estate funds and diversified asset funds. One of the company's key successes in 2025 was its announcement of exiting a local real estate investment fund valued at 268 million Riyals, achieving a return of 35%. This achievement reflects the asset management team's ability to select high-yield real estate assets and the optimal timing for exits. The company also launched several new funds in the first half of 2025, including the balanced, defensive, and growth multi-asset funds, which aim to achieve sustainable returns while controlling risk levels through the distribution of investments across multiple asset classes. These funds are characterized by their flexibility in adapting to market changes and applying periodic rebalancing policies to ensure maximizing returns and minimizing volatility. The flexible Saudi equity funds exemplify the active strategies the company employs, as the asset ratios within the fund are adjusted according to market movements and growth expectations. Although Al-Awwal Investment does not publicly disclose detailed performance data for each fund like listed companies, the announced exit results and the launch of new products reflect the company's dynamism and efficiency in asset management. Additionally, the approval of the funds by the Capital Market Authority indicates the quality of the investment policies and governance followed by the company. Overall, these results enhance Al-Awwal Investment's position as a trusted provider of advanced investment solutions that meet the aspirations of investors in the Saudi market.

Al-Awwal Investment's strategy is clearly influenced by the major economic changes taking place in the Kingdom of Saudi Arabia within the framework of Vision 2030. This vision aims to diversify national income sources, reduce dependence on oil, and enhance the financial sector's contribution to the economy. Investment companies like Al-Awwal Investment play a pivotal role in achieving these goals by developing advanced financial products and attracting local and foreign capital to invest in diverse sectors. The company has responded to these transformations by launching diverse funds that include equities, real estate assets, and credit funds, providing investors with greater opportunities to diversify their investment portfolios. The company also benefits from new regulations that facilitate the issuance of financial products and allow foreign investors to enter the Saudi market. These changes have reflected on the company's policies in adopting flexible investment strategies and applying best practices in governance and disclosure to meet transparency and trust requirements in the financial market. The company also focuses on developing its human resources and updating its technological systems to keep pace with rapid developments in the asset management sector. In this new economic environment, Al-Awwal Investment aims to expand its market share through innovation and launching products that meet the changing needs of investors, enhancing its role in achieving the objectives of Saudi Vision 2030. The company is expected to continue expanding its operations and attracting new investments, driven by supportive regulatory systems and government incentives aimed at developing the Saudi financial sector.

Al-Awwal Investment places utmost importance on transparency and disclosure in all its products and investment strategies, in compliance with the regulations of the Saudi Capital Market Authority. This begins with full disclosure of investment policies, risk levels, fees, and investment objectives for each fund in the issuance prospectus made available to investors prior to subscribing to any product. The company is also committed to providing periodic reports on fund performance, including details about returns, distributions, and any changes in investment policy or management team. These reports allow investors to monitor their investments and make informed decisions based on objective and periodic data. Furthermore, the company promptly discloses any significant changes in its products, such as adjustments to investment policies or rebalancing of funds, as occurred in June 2025 when it announced the rebalancing of the investment basket of the traded quantitative Saudi equity fund. The company is keen to adhere to international transparency standards in disclosing potential risks, including disclosures on how risks are managed and asset distribution within each fund. In cases of exits or achieving exceptional returns, such as the 35% return from a real estate fund, the company clearly announces this in press releases. These practices enhance investor confidence in the company and contribute to building a strong reputation in the Saudi asset management market. Ultimately, transparency and disclosure represent the cornerstone of Al-Awwal Investment's strategy to attract investors and achieve sustainability in growth and performance.

Technology and digital transformation play an increasingly significant role in developing the services and products of Al-Awwal Investment, aligning with the digital transformations taking place in the Saudi financial sector. The company benefits from the digital infrastructure of Al-Awwal Bank in providing electronic channels that allow investors to subscribe to investment funds, monitor their portfolio performance, and execute purchase or redemption operations electronically without the need to visit branches. The company also relies on advanced asset management systems that enable real-time tracking of fund performance and rapid application of asset rebalancing policies in response to market changes. Digital platforms provide periodic reports to investors, including details about achieved returns and asset distribution, enhancing transparency and ease of investment decision-making. Al-Awwal Investment is committed to developing cybersecurity systems to protect investor data and ensure the confidentiality of financial transactions. The company also focuses on training its staff to use the latest software and digital tools in asset management, which enhances operational efficiency and reduces operational costs. The company aims to integrate artificial intelligence and quantitative analytics into its investment strategies, as seen in the management of the traded quantitative Saudi equity fund, which relies on advanced algorithms for asset distribution. Amidst the rapid digital transformation in Saudi Arabia, modern technologies represent a fundamental pillar in Al-Awwal Investment's growth and expansion strategy, opening the door for it to provide innovative services that meet the expectations of the new generation of investors.

Al-Awwal Investment faces a future filled with both opportunities and challenges. On one hand, regulatory changes in the Saudi financial market and Vision 2030 provide significant opportunities for expanding its products and services and attracting local and foreign investments into its funds. The company is expected to continue launching new specialized funds and developing products that align with global trends such as sustainability, responsible investing, and the use of financial technology in asset management. On the other hand, the company faces strong competitive challenges from major local and global financial institutions that have long-standing expertise and substantial assets under management. Sustainable expansion requires maintaining governance quality, continuously updating digital systems, and ensuring full compliance with changing regulatory requirements. Additionally, fluctuations in financial markets, changes in interest rates, and shifts in global economic conditions all necessitate the company to enhance its risk management capabilities and innovate in investment strategies. The company also focuses on enhancing investor confidence through transparency, disclosure, and product innovation while continuing to develop its human resources and adopting best global practices in asset management. Overall, the future aspirations of Al-Awwal Investment appear promising, driven by the support of Al-Awwal Bank, a positive regulatory environment, and the company's desire to be among the leaders in the asset management sector in Saudi Arabia, provided it continues to develop its capabilities and keep pace with rapid changes in the financial market.