Al Ahli Financial: Detailed Report on the Company and Its Role in the Saudi

Al Ahli Financial is considered one of the leading investment institutions in the Kingdom of Saudi Arabia, established to meet the growing needs of both local and international investors. The company has obtained a license from the Saudi Capital Market Authority, which enables it to manage assets, provide financial brokerage services, and establish and manage investment funds. Al Ahli Financial's importance lies in its role as a bridge between investors' aspirations and the national strategy for economic diversification away from oil, by investing capital in various sectors such as petrochemicals, energy, and real estate.

Al Ahli Financial's activities extend to providing investment consulting for institutions and individuals, risk management, and executing trading operations, making it a key partner in investors' journeys toward achieving their financial goals. The company has proven its ability to innovate by launching specialized investment funds, such as the "Al Ahli Gulf Petrochemicals Fund," which was approved by the Capital Market Authority in December 2024. This launch is not just a new product but reflects the regulatory authorities' confidence in Al Ahli Financial's ability to develop investment products that meet market demands and align with the Kingdom's Vision 2030.

Moreover, Al Ahli Financial is committed to the highest standards of transparency and governance, enhancing its credibility in the market and attracting a wide range of investors seeking safe and effective investment solutions. The company maintains close communication with regulatory authorities to ensure compliance with all regulatory requirements and to develop products that align with national policies. In light of these factors, Al Ahli Financial stands out as a key driver of financial and investment growth in the Kingdom, contributing directly to enhancing the attractiveness of the Saudi financial market to both local and foreign investments.

The activities of Al Ahli Financial are subject to close supervision by the Saudi Capital Market Authority, the highest regulatory body responsible for regulating and developing the financial market in the Kingdom. The Authority has granted Al Ahli Financial an official license, allowing it to engage in asset management, provide financial brokerage services, and issue investment funds, in accordance with the highest standards of governance and transparency. This license is not merely an administrative procedure; it serves as a certificate of trust in Al Ahli Financial's efficiency and capabilities, as its operations are subject to continuous oversight to ensure the protection of investors' interests and compliance with national policies.

The Authority regularly updates regulatory rules to keep pace with global and local developments in the financial sector, and in 2024, it officially approved the launch of the "Al Ahli Gulf Petrochemicals Fund," a step that underscores the Authority's commitment to supporting innovation and providing investment products that meet market needs. The Authority imposes strict requirements on financial service companies to ensure efficient risk management and the application of best practices in asset management and transparency in financial disclosures.

Al Ahli Financial is required to submit periodic reports to the Authority regarding the performance of its funds and financial products, in addition to subjecting all its activities to regular audits and reviews. It must also comply with anti-money laundering and counter-terrorism financing regulations and implement Know Your Customer (KYC) policies with high precision. This comprehensive regulatory framework enhances investors' confidence in the company and provides them with a safe and reliable investment environment.

On the other hand, the Authority supports Al Ahli Financial's efforts to develop new investment tools that align with the Kingdom's strategic goals, such as deepening the financial market and attracting foreign investments. The Authority works closely with the company to ensure that all products comply with regulatory requirements and to stimulate innovation in the financial sector. Through this effective oversight, the Authority ensures that Al Ahli Financial remains at the forefront of companies contributing to the development of the Saudi financial sector and enhancing its regional and international standing.

Al Ahli Financial is distinguished by offering a wide range of investment products and services targeting various segments of investors, whether individuals or institutions. Among the most prominent of these services is asset management through professionally managed investment funds and portfolios, where the company provides investors with opportunities to enter equity and bond markets, in addition to specialized sectors such as energy and infrastructure.

Al Ahli Financial seeks to meet market demands by launching specialized investment funds, the most notable of which is the "Al Ahli Gulf Petrochemicals Fund," approved in December 2024, which targets petrochemical companies in the Gulf Cooperation Council, providing investors with a window to benefit from the growth of this vital sector. Additionally, the company offers diversified funds focusing on Saudi stocks, Gulf stocks, global markets, and fixed income, where assets are selected according to studied methodologies that balance return and risk.

Al Ahli Financial's services also include financial brokerage, allowing clients to execute buy and sell transactions in the Saudi stock market and other regional and international markets, with advanced electronic platforms and continuous technical support. In terms of investment consulting, the company provides integrated solutions for wealth management, financial planning, and advising institutions on mergers and acquisitions or initial public offerings.

In response to rapid developments in the financial sector, Al Ahli Financial has recently focused on developing innovative investment products, including Sharia-compliant funds, investment funds in technology and renewable energy, and venture capital (VC) funds, to enhance the diversity of its investment portfolio and meet investors' aspirations in a changing environment. All these services come within a strict regulatory framework that ensures the protection of investors' funds and enhances confidence in the company's institutional performance.

The launch of the "Al Ahli Gulf Petrochemicals Fund" represents a strategic turning point in Al Ahli Financial's journey, reflecting the company's ability to foresee investment opportunities in vital sectors and provide innovative solutions that meet investors' aspirations. The fund received approval from the Saudi Capital Market Authority in December 2024, making it one of the first specialized funds in the petrochemical sector at the level of the Gulf Cooperation Council. The fund aims to invest in the shares of leading companies in the petrochemical industry, benefiting from the expected growth in this sector, which is one of the pillars of the Gulf economy.

The fund allows investors to gain exposure to a diversified portfolio of assets in petrochemical companies, with investments distributed geographically and sectorally to achieve a balance between return and risk. The significance of this fund lies in providing an organized investment channel that enables individual and institutional investors to benefit from the dynamics of the petrochemical market without bearing the risks of direct investment in a single company. The fund also enhances the Saudi financial market's trend towards diversifying products and expanding the base of managed assets, aligning with the Vision 2030 goal of deepening the capital market and attracting foreign investments.

The fund is expected to manage assets worth billions of riyals, considering the size of investments available in the Gulf petrochemical sector. Its launch comes at a time when the sector is experiencing rapid growth due to rising global demand for petrochemical products and the expansion of energy and industrial projects in the region. The fund's management relies on a team of specialists in financial analysis and asset management to ensure the best results for investors within a strict regulatory framework.

This strategic transformation confirms Al Ahli Financial's ability to innovate and foresee opportunities, enhancing its position as a key partner in driving economic development in the Kingdom and the region. It also opens the door for the development of other specialized funds in promising sectors, deepening the company's role in developing the Saudi financial market.

Al Ahli Financial plays a vital role in achieving the objectives of the Kingdom's Vision 2030, which focuses on diversifying national income sources and reducing dependence on oil. This is achieved through the development of innovative investment tools that attract capital towards promising non-oil sectors such as petrochemicals, renewable energy, financial technology, and manufacturing industries. This role has been clearly demonstrated through the company's launch of specialized funds, such as the Gulf Petrochemicals Fund, which serves as a practical model for how to direct investments towards strategic sectors that enhance national economic growth.

Al Ahli Financial continuously strives to develop investment products that align with economic development requirements, studying market needs and proactively launching new funds that keep pace with global and local investment trends. These initiatives include investing in startups, financing infrastructure projects, and supporting innovation in technology and energy sectors. Through these activities, the company contributes to creating new job opportunities, stimulating growth in non-traditional sectors, and enhancing the Saudi economy's ability to face global challenges.

At the institutional level, Al Ahli Financial relies on specialized teams in financial analysis and risk management, enabling it to design investment products that are flexible and adaptable to economic changes. The company is also keen to adopt the latest technologies in its services, such as using artificial intelligence and data analytics in managing financial portfolios, which enhances performance efficiency and reduces risks.

Additionally, Al Ahli Financial collaborates with government entities and the private sector to develop the financial market ecosystem by participating in preparing strategic studies and providing advice on public-private partnership projects. These efforts contribute to deepening the Saudi financial market, making it more attractive for local and global investments, and affirming Al Ahli Financial's position as a strategic partner in achieving the Kingdom's ambitious visions.

Although Al Ahli Financial is not listed on the Saudi stock market and is not required to publish detailed financial reports like joint-stock companies, some available data regarding its activities for 2024 and 2025 reflect significant growth in managed assets and expansion in investment products. In December 2024, the company received official approval from the Capital Market Authority to launch the "Al Ahli Gulf Petrochemicals Fund," indicating the company's expansion into managing new funds targeting vital sectors such as energy and industry.

This fund is expected to manage assets worth billions of riyals, based on the size of investments available in the Gulf petrochemical sector. This development indicates an increase in the value of assets managed by Al Ahli Financial, with the company moving towards launching additional funds in renewable energy and financial technology sectors in the near future. These initiatives come in the context of the wave of economic diversification that the Kingdom is experiencing, as the government seeks to enhance investments in non-oil sectors.

In terms of financial performance, available indicators reflect stability in the returns of the funds managed by the company, especially those focusing on Saudi stocks and vital sectors. Al Ahli Financial benefits from its distinguished regulatory position and the trust of regulatory authorities, enhancing its ability to attract more institutional and individual investors.

Additionally, the launch of new funds indicates an expansion strategy aimed at maximizing returns and diversifying income sources. The company relies on specialized investment teams that utilize the latest financial analysis and risk management tools to ensure the best results within a strict regulatory framework. In light of these factors, Al Ahli Financial is expected to continue achieving sustainable growth and increasing its contribution to the development of the Saudi financial market in the coming years.

The relationship between Al Ahli Financial and Hail Cement stock exemplifies how investment funds managed by investment companies can invest in listed companies in the Saudi market. Although Al Ahli Financial does not directly own Hail Cement shares, its diverse investment funds may invest in shares of cement companies as part of their strategies to achieve diversification and enhance returns for investors. This role is highlighted with the launch of the "Al Ahli Gulf Petrochemicals Fund," which focuses on petrochemical sector companies, yet other Al Ahli Financial funds may include shares from the cement sector in their portfolios.

Hail Cement stock (symbol 3001 on Tadawul) represents one of the active companies in the cement sector, which attracts the attention of investment funds due to its connection to infrastructure projects and urban development in the Kingdom. During 2024, the price of Hail Cement stock ranged between 25 and 30 riyals, with an annual average of approximately 28 riyals, and a market capitalization estimated between 8 and 10 billion riyals. Hail Cement is an attractive option for some investment funds seeking stable returns and dividends, with an annual dividend yield between 3 and 5%.

The presence of cement company shares in investment fund portfolios contributes to risk diversification and achieving a balance in returns, especially in an economic environment experiencing fluctuations in oil prices and demand levels for construction materials. Fund management, such as that of Al Ahli Financial, allows individual and institutional investors to benefit from market opportunities without the need to invest directly in a single company, while leveraging the company's expertise in selecting and distributing investments.

Thus, it is clear that the relationship between Al Ahli Financial and Hail Cement stock is based on the concept of asset management and diversification of investment portfolios, enhancing return stability and providing investors with multiple options within the Saudi stock market.

Hail Cement Company stock (symbol 3001) experienced relatively stable performance during 2024, with the stock price ranging between 25 and 30 riyals, showing relative stability in trading levels. By the end of the year, the stock stabilized at an average of approximately 28 riyals, reflecting investors' confidence in the company's ability to achieve stable returns despite global economic challenges. This sustainability in performance is attributed to the continuous demand for cement in the Kingdom, supported by major infrastructure projects under Vision 2030.

Financially, the company's market capitalization was around 8 to 10 billion riyals, based on the number of outstanding shares and trading price, placing Hail Cement among medium-sized companies in the Saudi cement sector. The price-to-earnings (P/E) ratio ranged between 15 and 16 times, reflecting a moderate valuation compared to the sector average, indicating the company's profitability stability and ability to distribute dividends regularly.

Regarding dividends, the annual yield for the stock was between 3 and 5% of the stock price, which is considered good for investors seeking fixed income. The company has maintained a relatively moderate to high dividend distribution policy, given the stability of cash flows and high local demand for its products.

The performance of Hail Cement stock stands out as a suitable option for investment funds focusing on stable returns and sector diversification, especially amid intense competition within the cement sector and changes in raw material and energy prices. These indicators demonstrate the company's resilience and ability to face economic challenges while continuing to focus on enhancing its market share and meeting the needs of national development projects.

The cement sector is one of the vital pillars of the Saudi economy, given its direct role in supporting infrastructure, housing, and urban development projects. The sector is characterized by capital intensity and a diversity of players, with several major companies competing to meet the increasing demand resulting from Vision 2030 projects, such as the NEOM project, the Red Sea project, and expansions of industrial cities. Despite the gradual recovery following the COVID-19 pandemic, the sector still faces challenges such as fluctuations in fuel and raw material prices and operational cost pressures.

Among the prominent competitors in the sector are Al Yamamah Cement Company, one of the largest producers covering the central and northern regions; Southern Cement Company, which has the largest annual production capacity serving the south; Riyadh Cement Company, which dominates the capital market and surrounding areas; Eastern Cement Company, specialized in eastern markets; and other companies such as Yanbu Cement, Najran Cement, Arabian Cement, and Umm Al-Qura Cement. Competition in the sector is also characterized by geographical market segmentation, where each company focuses on a specific geographical area to meet local demand and reduce transportation costs.

Major companies in the sector are engaged in a race for production efficiency and product quality, in addition to developing innovative solutions to address rising energy prices and adopting alternative energy sources. Companies also benefit from government programs supporting housing and infrastructure projects, ensuring continued demand for cement. For investment funds like Al Ahli Financial, the cement sector offers opportunities for risk distribution and achieving stable returns, especially from companies that have regular dividend distribution policies and high operational efficiency.

Overall, the Saudi cement sector remains a competitive and attractive arena for institutional investments, with expectations of continued growth amid significant government projects and anticipated economic transformations.

Al Ahli Financial relies on diverse strategies in asset management aimed at achieving a balance between return and risk, meeting the needs of various investor segments. These strategies include asset allocation across diverse sectors such as equities, bonds, real estate, and specialized sectors like infrastructure and energy. The company relies on advanced analytical methodologies in asset selection, considering macroeconomic factors, sector performance, and future market forecasts.

One of the main focuses of Al Ahli Financial's strategies is achieving sectoral and geographical diversification of investment portfolios, which reduces return volatility and enhances the funds' ability to withstand economic fluctuations. For instance, the funds managed by the company may invest in a range of shares from petrochemical companies, cement, banks, and technology, in addition to fixed-income instruments. This diversification provides investors with relative security and limits risks associated with exposure to a single sector.

Al Ahli Financial places great importance on risk management, relying on specialized teams to monitor risks and analyze various scenarios. The company employs advanced technical tools such as quantitative analysis and financial modeling to assess potential risks and make informed investment decisions. It also provides periodic reports to investors on fund and portfolio performance, with a commitment to full transparency in disclosing risks and returns.

Additionally, Al Ahli Financial seeks to develop Sharia-compliant investment products and provide tailored wealth management solutions for individuals and institutions with specific needs. One of the company's strengths lies in its ability to adapt its strategies to economic changes, enhancing its ability to achieve investors' goals in a dynamic market environment.

Al Ahli Financial plays a pivotal role in stimulating financial innovation within the Saudi market by developing new investment tools and adopting the latest financial technologies. This comes in the context of the Kingdom's shift towards digital transformation and the adoption of FinTech solutions to enhance market efficiency and attract foreign investments. The company focuses on launching innovative investment products, such as funds specialized in petrochemicals and renewable energy sectors, in addition to developing advanced electronic trading platforms that allow investors to manage their investments easily and transparently.

Al Ahli Financial aims to leverage modern technologies in data analysis, artificial intelligence, and automation of investment processes, which enhances decision-making efficiency and reduces operational costs. The company also participates in national initiatives to develop the financial market infrastructure, such as supporting digital governance projects, enhancing transparency in financial disclosures, and developing the infrastructure for distributed ledger technologies (Blockchain) that enable faster and more secure financial transactions.

At the product level, Al Ahli Financial provides opportunities for investment in startups and venture capital funds, contributing to supporting the innovation ecosystem and entrepreneurship in the Kingdom. These efforts align with strategic partnerships with regulatory authorities and other financial institutions to develop a flexible work environment that keeps pace with global changes.

Through this leading role, Al Ahli Financial contributes to making the Saudi financial market more competitive and attractive for local and international capital, enhancing the Kingdom's position as a regional center for financial innovation in the Middle East.

In 2024, a series of significant developments occurred in Al Ahli Financial's activities and the Saudi investment market in general. The most prominent announcement was the approval by the Saudi Capital Market Authority for the launch of the "Al Ahli Gulf Petrochemicals Fund," reflecting the company's expansion in providing specialized investment products that meet changing market needs. This fund represents a strategic step to attract capital towards the petrochemical sector, which is experiencing rapid growth amid rising global demand for petrochemical products and the expansion of energy and industrial projects in the region.

In terms of operational performance, Al Ahli Financial continues to work on developing new investment products and launching specialized funds in promising sectors such as renewable energy and financial technologies. These efforts are part of the company's endeavor to meet investors' aspirations and enhance its position as a leading provider of investment services in the Kingdom.

As for the Saudi investment market, it has witnessed growth in trading volumes and an increase in the number of licensed investment funds, with rising demand for Sharia-compliant products and specialized funds. The Capital Market Authority continues to support innovation by facilitating licensing procedures and updating regulatory frameworks to keep pace with global developments.

Regarding Hail Cement stock, there were no significant developments in the company's structure or strategic directions during 2024, as the stock continued its stable performance benefiting from local demand for cement and government infrastructure projects. Overall, these developments reflect the dynamism of the Saudi market and Al Ahli Financial's ability to keep pace with changes and provide investment solutions that meet investors' needs.

Al Ahli Financial faces several future challenges that require strategic responses to ensure continued growth and enhance its competitiveness in the Saudi market. Among the most prominent of these challenges are fluctuations in global financial markets, changes in oil prices, and rapid regulatory developments. The company must keep pace with economic and financial changes and continuously update its investment strategies to ensure achieving investors' goals within a dynamic market environment.

At the regulatory level, the Capital Market Authority imposes increasing requirements on asset management companies regarding transparency, risk management, and governance of investment products. These requirements necessitate the development of strong internal control systems and the adoption of the latest practices in asset management. Additionally, increasing competition from local and global companies presents another challenge, as Al Ahli Financial must continue to innovate and offer investment products that meet market needs and outperform competing offerings.

Conversely, the Saudi investment environment offers promising growth opportunities, especially with the government's direction towards enhancing investments in non-oil sectors and expanding the base of foreign investors. Vision 2030 projects, such as developing smart cities and renewable energy, present new opportunities for launching specialized investment funds targeting these sectors. The digital transformation and adoption of advanced financial technologies also provide opportunities to improve the efficiency of investment operations and offer innovative services to clients.

In light of these challenges and opportunities, Al Ahli Financial is expected to continue expanding its product portfolio, enhancing its capabilities in risk management and financial innovation, ensuring sustainable growth and strengthening its position as a leading company in the Saudi financial market.