Albilad Capital: Comprehensive Analysis of Albilad Capital's Role in

Albilad Capital was established as the investment arm of Albilad Bank in response to the Saudi market's need for specialized financial companies that combine the strength of banking capital with asset management expertise. The company's roots date back to 2004 when Albilad Bank launched its investment unit as part of a strategy to diversify income sources and enhance its role in the financial market. Albilad Capital obtained a license from the Saudi Capital Market Authority, enabling it to offer various activities, including financial brokerage, asset management, and launching investment funds, in addition to providing financial advisory services to institutions and individuals.

One of the important institutional factors in the establishment of Albilad Capital is its direct connection to Albilad Bank, the fourth largest bank in the Kingdom. This connection provides it with strong financial and administrative support, enhancing investor confidence in its ability to manage large capital and deal with market fluctuations. The company has drawn on the parent bank's expertise in risk management, compliance with Sharia standards, and building specialized teams that combine local competencies with global expertise.

Over the years, Albilad Capital has expanded its services to include broader areas such as governance, market index development, and launching new funds that align with economic developments and Vision 2030. The company has also distinguished itself by its quick response to regulatory changes, being one of the first companies to adopt transparency requirements and regular disclosures about funds and portfolios, which has enhanced its position as a trusted financial institution. Additionally, Albilad Capital has focused on developing its digital infrastructure, benefiting from Albilad Bank's support in digital transformation, allowing it to offer advanced electronic services and attract a wider segment of individual and institutional investors. With this solid foundation, Albilad Capital has been able to play a leading role in connecting capital with investment opportunities both within and outside the Kingdom.

The relationship between Albilad Capital and Albilad Bank is a core element in understanding the role the company plays in the Saudi financial market. Albilad Capital is the wholly-owned investment arm of Albilad Bank, operating under its supervision and strategic direction, benefiting from the capital base and banking expertise of the parent bank. This institutional link gives Albilad Capital a strong competitive advantage, as it has access to substantial financial resources and benefits from advanced technical and administrative infrastructure.

Albilad Bank, established in Mecca in 2004, is one of the leading banks in the Kingdom, adopting an expansionary policy in the banking and investment services sector. Through Albilad Capital, the bank provides integrated services to its clients, including asset management, financial brokerage, and investment advisory services, enhancing its ability to meet the needs of a wide range of investors, from individuals to large institutions. Data for 2024-2025 shows that Albilad Bank has witnessed growth in the volume of loans, financing balances, and net profits, positively reflecting on Albilad Capital's ability to expand its operations and investment products.

Albilad Capital is subject to the supervision of the Saudi Capital Market Authority, which imposes strict compliance with governance and transparency standards, ensuring the protection of investor rights. At the same time, Albilad Capital enjoys administrative and financial independence in managing its daily operations, issuing quarterly and annual performance reports that are included in Albilad Bank's consolidated reports. This balance between institutional support and operational independence has enabled Albilad Capital to achieve sustainable growth and provide innovative financial products that meet the requirements of the evolving Saudi market.

Thanks to this close relationship, Albilad Capital continues to develop its services and products in line with investor aspirations and best global practices, contributing to achieving Albilad Bank's strategic goals and diversifying its income sources.

Since its inception, Albilad Capital has been distinguished by offering a comprehensive range of investment services designed to meet the needs of a wide segment of investors in the Saudi market. These services include asset management, which involves managing portfolios and investment funds that pool investors' capital and direct it toward diverse opportunities in stocks, sukuk, real estate, and other strategic sectors. Among the prominent funds managed by Albilad Capital is the Albilad Saudi Growth Fund, which focuses on shares of small and medium-sized companies with growth potential, as well as the technology equity fund, in addition to Sharia-compliant real estate funds.

Albilad Capital also provides financial brokerage services, enabling investors to trade stocks and funds listed on the Saudi financial market, benefiting from an advanced electronic platform that ensures speed of execution and transparency of operations. The company also offers specialized advisory services for significant institutions and individuals, including building customized investment portfolios, market analysis, and providing recommendations based on in-depth research, while adhering to the prohibition of providing direct investment advice or buy/sell recommendations, in compliance with the Capital Market Authority's regulations.

In recent years, Albilad Capital has kept pace with regulatory and technological changes by launching advanced digital initiatives, such as the electronic fund trading platform and the ability to monitor portfolio performance online periodically. The company has also launched new funds targeting promising sectors, such as the Sharia-compliant real estate fund and the American and Indian equity funds, as part of the Kingdom's direction to diversify the economy and attract capital to new sectors.

Research and financial analysis services are among Albilad Capital's key strengths, as it provides periodic reports on sectors and listed stocks, helping investors understand market dynamics and make informed decisions. As a result of this diversity in products and services, Albilad Capital has become a trusted partner for investors seeking Sharia-compliant investment opportunities that align with economic developments in the Kingdom.

Albilad Capital experienced significant growth in total managed assets during 2024 and 2025, reflecting increasing investor confidence in the company's capabilities and the efficiency of its investment strategies. According to official reports issued by Albilad Bank and the Saudi Capital Market Authority, the portfolio of Albilad Capital's funds, particularly the Albilad Saudi Growth Fund, reached record levels in the third quarter of 2024. The value of managed assets in the fund saw a growth rate exceeding 20% compared to the previous year, thanks to the strong performance of the mid and small-cap stocks in which the fund invested.

Albilad Capital has actively contributed to raising the proportion of managed assets in the local market to unprecedented figures by the end of 2024, coinciding with the launch of new investment products and expanding its base of individual and institutional clients. This success is attributed to the conservative investment policies implemented by the company, maintaining a balance between risks and returns, in addition to benefiting from the Kingdom's economic trends, particularly the massive infrastructure projects under Vision 2030.

The strong financial performance of Albilad Bank has enhanced Albilad Capital's ability to support its investment funds and provide new products that meet the changing market demands. The increase in net profit and assets at the parent bank has boosted its capacity to finance investment projects and expand its operations. This has reflected positively on investor confidence, leading to a flow of new capital into the funds and portfolios managed by Albilad Capital.

It is worth noting that Albilad Capital has committed to updating its periodic reports on the performance of managed assets, in compliance with the transparency requirements imposed by the Saudi Capital Market Authority. These reports provide investors with a clear view of performance development, asset distribution, and achieved returns, enhancing their confidence in the company and encouraging them to increase their investments. All of this has made Albilad Capital one of the prominent players in the asset management sector in the Kingdom.

Albilad Capital places utmost importance on governance and transparency principles in all its operations, recognizing their role in building trust with investors and ensuring the sustainability of its business in an evolving regulatory environment. The company operates under licenses from the Saudi Capital Market Authority, which requires strict compliance with a set of regulations and rules aimed at protecting investor rights and enhancing integrity in the financial market. Among these commitments are the periodic publication of fund compositions, disclosure of investment policies, and reporting of potential risks associated with each investment product.

In response to the evolving requirements of the Capital Market Authority in the second half of 2024, Albilad Capital took the initiative to enhance its transparency by publishing detailed reports on fund and portfolio performance, regularly sharing performance data, distributions, and fees with clients. The company has also adopted strong policies to combat money laundering, manage risks, and control conflicts of interest, ensuring a safe and reliable investment environment.

At the level of corporate governance, Albilad Capital has established internal committees specialized in overseeing investment operations, periodically evaluating performance, and ensuring compliance with Sharia and financial standards. The company also relies on clear mechanisms for holding executive management accountable and reviewing investment decisions, in line with best global practices in the asset management sector.

Albilad Capital believes that transparency is not only a regulatory obligation but a fundamental element of its strategy to attract investors and enhance its competitiveness. This commitment has reflected in the company's rising classification as a licensed financial institution and contributed to attracting local and international capital, as well as establishing its reputation as a trusted company in the Saudi market. Albilad Capital's commitment to governance and transparency remains a cornerstone of its future strategy to continue growing and providing investment services to global standards.

Albilad Capital plays a strategic role in achieving the goals of the Kingdom's Vision 2030, which aims to diversify the Saudi economy and reduce dependence on oil by enhancing investments in new sectors. Albilad Capital's strategy is based on directing capital towards vital sectors with added value, such as technology, real estate, infrastructure, and manufacturing industries. Through its investment funds, the company enables investors to participate in projects that support sustainable development and align with the economic transformations in the Kingdom.

One prominent example is the Albilad Saudi Growth Fund, which invests in small and medium-sized Saudi companies with high growth potential, contributing to supporting national companies and providing new job opportunities. Albilad Capital has also launched specialized funds in technology and real estate sectors, in line with the Kingdom's direction towards a digital economy and the development of smart cities.

Moreover, Albilad Capital contributes to financing massive infrastructure projects that are cornerstones of Vision 2030, such as housing, transportation, and logistics areas. This is evident through its direct and indirect investments in construction and building materials companies, such as Hail Cement, which benefit from the increasing demand resulting from the expansion of government projects.

In this context, Albilad Capital works to enhance investment awareness among the Saudi community by publishing research reports and in-depth analyses of promising sectors, helping investors understand opportunities and challenges, and making decisions based on scientific foundations. The company is also committed to providing Sharia-compliant investment products, making it a preferred choice for a wide segment of local investors.

Thanks to these policies, Albilad Capital has become a key partner in implementing Vision 2030, enabling investors to contribute to the development of the Saudi economy and benefit from the available investment opportunities in targeted sectors.

Portfolio and investment fund management are fundamental pillars that Albilad Capital relies on in building its investment strategy. The company follows a professional approach to asset management, focusing on diversifying risks and achieving the best possible returns within acceptable risk limits. The process begins with identifying the client's investment objectives, whether an individual or an institution, and then designing a customized portfolio that aligns with these goals and risk tolerance levels.

Albilad Capital offers a variety of investment funds, among which are: the Albilad Saudi Growth Fund, which focuses on investing in promising Saudi company shares, the American technology equity fund, and the Sharia-compliant real estate fund. These funds follow clear investment policies, with full disclosure of distribution strategies, asset composition, and fees, in compliance with the requirements of the Saudi Capital Market Authority.

The work mechanism in fund management begins with pooling capital from investors, then distributing it across a carefully selected range of assets based on financial and technical analysis, and the vision of Albilad Capital's investment team. The performance of the fund is monitored periodically, and necessary adjustments are made to keep pace with market developments and economic events. The company also provides periodic reports to investors, explaining performance development, distributions, and any changes in investment policy.

One of the prominent features of Albilad Capital's products is their compliance with Sharia law, as the company adheres to the regulations of the Sharia board in all its funds and transactions, making it a preferred choice for a large segment of investors in the Kingdom. The digital platform of Albilad Capital allows investors to monitor their portfolio performance, subscribe or redeem from funds easily, and benefit from advanced financial analysis tools.

Thanks to these mechanisms, Albilad Capital has managed to attract a wide base of investors and achieve competitive performance for its funds while maintaining a balance between return and risk, meeting client aspirations in a dynamic market environment.

Albilad Capital has kept pace with the rapid digital transformations in the financial sector by developing its technological infrastructure and launching advanced electronic platforms to serve its clients. The company recognized early on the importance of digitization in enhancing the efficiency of investment operations, improving customer experience, and expanding the user base, especially with the increasing demand for digital financial services in the Kingdom.

Albilad Capital launched a comprehensive electronic platform that allows individual and institutional investors to open investment accounts, subscribe to funds, manage portfolios, and monitor performance in real-time through an easy-to-use and secure interface. The platform provides access to periodic performance reports, disclosures, and market news, enhancing the investor's ability to make decisions based on accurate and timely information.

Albilad Capital has invested in enhancing information security and protecting customer data by applying the latest encryption protocols and electronic protection systems, in line with international standards and the requirements of the Capital Market Authority. The company has also added advanced financial analysis tools within the platform, enabling investors to compare fund performance, review distributions, and analyze fees, with the ability to interact with technical and advisory support teams through multiple channels.

This digital transformation has not only been limited to the services provided to clients but has also included the company's internal operations, where many operational procedures, such as portfolio evaluations, report preparation, and risk monitoring, have been automated, leading to reduced human errors and faster processing of operations.

This digital approach has reflected positively on customer satisfaction, attracting a segment of youth and new investors who prefer electronic transactions, and increasing Albilad Capital's efficiency in competing with other financial institutions. The digital transformation has also enhanced transparency, as investors can access the details of their transactions at any time, which has strengthened market confidence in the company and enabled it to keep pace with the growing expectations of modern Saudi investors.

Hail Cement Company (Stock Symbol: 3001) is an important model for the sectoral analysis studies provided by Albilad Capital as part of its research services. During 2024, Hail Cement was the focus of many reports and analyses, especially after the announcement by Qassim Cement Company of its intention to acquire the company, which led to fluctuations in the stock price and market value.

According to market data, Hail Cement's stock price peaked in mid-2024 at around 95-97 SAR, driven by the acquisition offer from Qassim, raising the company's market value to approximately 16-17 billion SAR, assuming a share count of about 172 million shares. After the completion of the acquisition and the stock price falling to the range of 85-95 SAR, the market value stabilized between 14.6 and 15.5 billion SAR. This example illustrates how stock prices are affected by external factors such as mergers and acquisitions, in addition to operational performance results.

In terms of financial indicators, Hail Cement's stock recorded a high price-to-earnings (P/E) ratio compared to the sector average, ranging between 30-40 times during the merger period, while the average P/E ratio for the cement sector in the Saudi market generally ranges between 10 and 20 times. This increase in P/E is attributed to the optimism associated with the acquisition, not just the company's operational performance.

Regarding cash distributions, Hail Cement followed a moderate annual dividend distribution policy, ranging in previous years between 4-6% of the stock value, such as a distribution of 0.25 SAR per share in 2022, but distributions were temporarily halted during the acquisition period in 2024.

Albilad Capital's analysis highlights how markets react to significant events and illustrates to investors the importance of studying the factors affecting stock market value, assessing risks and opportunities associated with each sector. These studies also provide investors with a scientific framework for understanding the dynamics of the Saudi market and evaluating investment decisions.

The cement sector is considered one of the strategic sectors in the Kingdom of Saudi Arabia, forming an essential part of the national economy's infrastructure, especially in light of the massive urban expansion projects adopted by Vision 2030. The sector is witnessing intense competition among several major companies, including Hail Cement, Qassim Cement, Saudi Cement, and Eastern Province Cement, as well as other companies distributed across the Kingdom.

In 2023, local cement production reached approximately 60 million tons, a moderate increase from the previous year due to increased demand resulting from housing and infrastructure projects, such as NEOM, Qiddiya, and the Red Sea. Hail Cement, for example, holds a significant market share in the northern region, benefiting from its geographical location and proximity to raw material sources. However, its ability to export to international markets remains lower than some companies located in the eastern regions closer to ports.

Albilad Capital's analyses indicate that the sector faces challenges related to fluctuations in raw material prices, seasonal demand, and the impact of oil prices on government spending, which directly reflects on companies' results. Nevertheless, the sector has maintained a good profit margin due to efficient cost management and pricing agreements with the private sector. Additionally, mergers and acquisitions, such as the Qassim deal with Hail, have contributed to raising the sector's efficiency and reducing internal competition.

Among the promising opportunities in the sector is the exploitation of government infrastructure projects, which are expected to increase demand for cement in the coming years. The trend towards new cities and logistics areas may also open new opportunities for Saudi cement companies, both in the local market and in export markets.

Albilad Capital emphasizes in its research the importance of studying sectoral indicators such as production, sales, profits, and distribution rates to understand the sector's dynamics and make investment decisions based on solid foundations without directly recommending the purchase or sale of any stock.

In recent years, the Saudi financial market has witnessed an increase in mergers and acquisitions, driven by companies' efforts to enhance their efficiency and improve their competitive position in a changing economic environment. The acquisition of Hail Cement by Qassim Cement in 2024 is one of the most prominent examples, resulting in the restructuring of the cement sector in the northern region and improving production and distribution efficiency.

Market experiences show that mergers and acquisitions have multiple effects on companies and the market as a whole. First, these operations can lead to achieving economies of scale by merging administrative and production processes, positively reflecting on profit margins. Second, they often cause a temporary rise in the stock prices of the targeted acquisition, as seen with Hail Cement, where the stock price rose to record levels following the announcement of the deal.

From a regulatory perspective, the Saudi Capital Market Authority works to ensure transparency at all stages of acquisition processes by requiring companies to fully disclose deal details, objectives, and their expected impact on shareholders. The Authority also establishes rules to ensure the protection of minority rights, enabling them to participate in decision-making through general assemblies.

In some cases, mergers may lead to reduced competition in the market, necessitating regulatory bodies to monitor the effects of deals on market structure and the balance of power among companies. On the other hand, these operations contribute to enhancing the sustainability of small and medium-sized enterprises by integrating them into larger entities that are better equipped to face economic challenges.

Albilad Capital highlights in its analysis of these operations the importance of studying the financial and operational impact of the merger, assessing profitability rates, price-to-earnings (P/E) ratios, and dividend distributions before and after the deal, without providing direct recommendations. These analyses reflect Albilad Capital's role in educating investors about market dynamics and the impact of institutional transformations on investment.

Albilad Capital adopts a strategy of diversifying investment products as a central approach to enhancing its ability to meet investors' needs and reduce risks associated with market fluctuations. The company recognizes that the Saudi market is undergoing significant transformation, with investors shifting towards new sectors and increasing demand for Sharia-compliant products, prompting it to develop funds and products that meet these requirements.

Among Albilad Capital's prominent products are local equity funds, which focus on shares of listed Saudi companies with growth potential, and global equity funds that invest in international markets, focusing on technology sectors and emerging markets such as India and the United States. Recently, Albilad Capital launched real estate investment funds that allow investors to benefit from returns in the real estate sector, a key driver of the national economy.

The company relies on specialized teams to develop products, monitoring markets and analyzing new investment opportunities while considering risk and return criteria. Albilad Capital is keen on Sharia compliance in all its funds, with all products reviewed by independent Sharia boards to ensure adherence to Sharia regulations.

In 2025, Albilad Capital launched a new real estate fund targeting urban development projects in the Saudi capital, in addition to enhancing its investments in American technology stocks. The company has also expanded its digital service offerings to facilitate new investors' access to these products through electronic trading platforms that allow easy subscription and redemption.

This diverse strategy has not only been limited to products but has also included developing financial analysis tools and providing periodic reports to investors on fund performance, enhancing their ability to monitor their investments and make decisions based on accurate data. Albilad Capital asserts that its product diversification policy is one of the factors behind its success and sustainable growth in a highly competitive market.

The recent financial results of Albilad Bank, a key influencer on Albilad Capital's performance, reflect a significant improvement in key financial indicators during 2024 and early 2025. Albilad Bank recorded a net profit growth of over 20% year-on-year in the third quarter of 2024, strengthening its financial position and allowing Albilad Capital greater support in developing its investment products and launching new funds.

The expansion of bank lending and improved asset quality led to an increase in managed assets, enabling Albilad Capital to expand its client base and offer innovative products that meet the changing needs of the Saudi market. This growth has also reflected on the company's ability to finance long-term investment projects, particularly in real estate, technology, and global equities.

Albilad Capital announced an increase in the volume of managed assets in its main funds, such as the Albilad Saudi Growth Fund, which recorded record levels in the third quarter of 2024. This performance comes amid increasing demand for Sharia-compliant investment products and rising investor confidence in Albilad Capital's ability to achieve competitive returns.

On the other hand, the company has responded to the Capital Market Authority's requirements regarding enhancing transparency and disclosure, as it began publishing detailed reports on fund and portfolio performance and providing periodic disclosures to clients about financial performance, investment policies, and potential risks.

These positive results have contributed to enhancing Albilad Capital's position as a leading financial institution in the asset management sector and supported its expansion plans to launch new products and expand its presence in local and international markets. These indicators confirm that sustainable financial performance is a fundamental factor in Albilad Capital's ability to continue innovating and providing added value to investors.

Albilad Capital places great importance on financial education as part of its strategy, recognizing the importance of empowering investors to understand markets and make informed investment decisions. The company provides a wide range of analytical reports and sector research covering developments in the Saudi financial market, the performance of various sectors, and the analysis of listed stocks, focusing on providing neutral information without direct recommendations to buy or sell any product.

Albilad Capital's reports include periodic analyses of listed stocks, such as studying the performance of Hail Cement during the merger and acquisition period, and analyzing indicators in the real estate and technology sectors. These analyses rely on a scientific methodology that combines fundamental and technical analysis, based on recent financial data and official company reports and announcements.

Through these reports, Albilad Capital aims to raise investment awareness among investors and provide tools for assessing risks and opportunities in the market. The company also offers online seminars and workshops that explain the fundamentals of investing, how to read financial reports, and principles of portfolio management. These programs target a wide range of investors, from beginners to professionals.

Albilad Capital is committed to transparency in all its reports, emphasizing that it does not provide direct investment advice or stock price predictions, in compliance with the rules of the Saudi Capital Market Authority. The digital platform allows clients to easily access these reports, with the possibility of obtaining customized analyses based on client requests.

This educational role enhances investors' confidence in the company and is a fundamental element in an evolving investment environment that requires effective partnerships between financial institutions and clients. This approach also supports the goals of Vision 2030 in building a financially aware community that manages its investments effectively and responsibly.

Albilad Capital faces a promising future amid the major economic transformations taking place in the Kingdom of Saudi Arabia, driven by Vision 2030, which focuses on economic diversification, developing financial markets, and attracting local and international investments. The company bases its future plans on a set of strategic axes aimed at enhancing its position as a leading institution in asset management and financial services.

One of the most prominent of these axes is the continued development of diverse investment products, focusing on promising sectors such as technology, real estate, and global markets. Albilad Capital also plans to enhance its digital capabilities by investing in modern financial technologies (FinTech) and expanding its electronic platforms, allowing it to attract new segments of investors, especially youth and international investors.

The company also seeks to deepen its partnerships with local and international financial institutions and expand its client base by offering specialized advisory services and investment portfolios tailored to meet clients' needs. Additionally, it places great importance on developing human capital by training national cadres and qualifying them to keep pace with global developments in the asset management sector.

In light of tightening regulatory frameworks and transparency requirements, Albilad Capital is committed to continuing to develop governance and compliance policies to ensure the protection of investor rights and sustainable growth. The company believes that the future of the Saudi financial market requires financial institutions capable of innovation, rapid response to changes, and effective contribution to achieving national development goals.

Thanks to these trends, Albilad Capital is expected to remain at the forefront of investment institutions in the Kingdom, keeping pace with economic transformations and contributing to building a developed financial sector that supports the Kingdom's aspirations for regional and global leadership.