Eshara Capital, the first investment fund managed out of Abu Dhabi Global Market (Abu Dhabi’s International Financial Centre), has launched its first strategy, providing global investors access to the UAE and Saudi Arabia equity markets and upcoming IPOs.
The Abu Dhabi-based fund manager is launching the first ever GCC equities strategy for international investors, capitalising on the region’s newly-awarded financial services permissions. The launch will be the ADGM’s first collective investment fund.
Eshara’s GCC equities strategy provides exposure to US dollar pegged assets that have AA-rated sovereign backing whilst yielding 5% or higher.
The fund, the first of a planned series of new initiatives from the firm, is launching in a bid to benefit from the continued correlation to the oil price recovery, as well various strategic transformation plans in the region that seek to diversify away from hydrocarbon reliance.
Oversubscription of Abu Dhabi Government’s bond
The oversubscription of Abu Dhabi Government’s bond issuance in April 2016 highlights the appetite from international investors, according to Eshara. It also believes that continued capital inflows into the region during 2016 will further strengthen the equity markets.
Eshara points that central to Saudi Arabia’s transformation plan will be the privatization of Saudi Arabia’s national oil company, Saudi Armco, which is dubs “a significant global event”, with up to $100bn of stock coming to market, making it home to the biggest company in the world.
Eshara Capital’s investment team is based in Abu Dhabi and has deep local networks and close links to sovereign wealth funds, large family offices and institutions in the region, and is partnered with global blue-chip investment partners (Bank of America Merrill Lynch, Julius Baer and Deloitte) to provide best in class investment practices and security for its clients.
Alex Guy, Esher’s chief executive and founder, said: “The UAE has a robust and sophisticated equity market and wider financial services sector with highly capitalised banks, a large concentration of institutional and private wealth and several of the world’s largest sovereign funds.
“In Saudi Arabia, on top of the Saudi Aramco share sale, we are likely to see a doubling of the Tadawul market capitalisation as up to 20 new companies, state owned share sales and family businesses list on the stock exchange.
“Being on the ground as we are and having unparalleled access to and knowledge of these sectors will provide our international investors with unique access to these opportunities.”