Other Arbah Services
Institutional & Private Clients
Brokerage
Select clients will be the advice of the finance margin coverage in accordance with the Islamic Shari'a. For our institutional customers, this will initially be for local and regional brokerage and trading services. In the near future we will expand to cover international markets and also offer custodian services through an affiliated licensed bank in Saudi Arabia.
We are also setting up aesthetically pleasing private trading lounges for our most important clients, including separate lounges for women. Moreover, our brokerage services for clients will be virtual and hassle-free, thus allowing us to provide convenient first-rate servicing to our clients. These services will be available to a full variety of customers. Saudi nationals and foreign citizens alike the world over will have the opportunity to utilize our services, along with institutional investors as well.
Asset Management
The current environment in the Gulf is undergoing a dramatic shift from simple fixed income and cash holdings to more complex instruments such as regionally and globally listed equities, private equity and real estate.
Due to the current economic growth in the region, coupled with the rapid increase of stock market capitalizations, the dynamics of wealth distribution will forever be changed. With localized wealth on the rise in the midst of a global marketplace, Arbah Capital's products and services will be ideal for our private clients from all over the globe. Arbah Capital will be in the vanguard of assisting a new breed of savvy and affluent investors as they strive to reach their financial ambitions.
Private Equity & Venture Capital
Since PE&VC is inherently compatible with Shari'ah and less subject to stock market vagaries, its appeal to GCC investors is strong and as a result has become a more sought after asset class.
Select PE&VC clients of Arbah Capital will benefit from investing in this high risk, high return asset class. This is best suited for our higher net worth clients given the long term and illiquid nature of these investments.
Equity Capital Markets
Arbah Capital will target equity capital markets through its capital market advisory and placement arms. We will initially concentrate on the Saudi market, but have also laid the groundwork to expand into other international equity capital markets in the near future. We will establish a firm foothold in these markets while strengthening our capital base by building alliances with investment banks. This will effectively enable us in offering a credit line to licensed underwriters and in executing primary block deals.
Sukuks
The share of fixed income asset products (Sukuks) issued in the GCC has more than doubled between 2006 and 2007 and continues to rapidly grow with no let up. Arbah Capital will be there to help clients invest in Sukuks across alternative asset classes in order to attain the benefits of diversification.
The current environment for Sukuks is such that retail investors are often unable to invest sizable monetary amounts while corporate and sovereign investors usually hold on to these assets until maturity. This can be attributed to the fact that the size of existing secondary markets for Sukuks is minimal. Arbah Capital plans to address this demand by tapping into this segment.
Real Estate
The most popular investment sector in 2007 throughout the Middle East and North Africa (MENA) region was real estate, representing nearly half of all total investment values. Although Islamic real estate funds are comparatively new in the GCC, fund sizes have increased almost tenfold over the course of the last few years. A significant portion of the amount invested in the MENA region is put into projects in the GCC. Given this potential, Arbah Capital will also offer real estate private equity funds to its clients.
Corporate Finance
With the skyrocketing number of privatizations in the GCC, plus the deregulation of regional stock markets, there is increased interest in IPO strategies for the region's businesses. Accordingly, the scope for developing exit opportunities is also on the rise.
Arbah Capital will provide its clients IPO listing and pre-IPO advisory services for small to mid cap businesses. Forthcoming, Arbah Capital intends to target size deals worth up to $150m. If given the correct market dynamics, however, we will also look to underwrite businesses of greater size as we work with our strategic partners. Given sufficient activity in the region, we will increase our capital base and form new alliances, particularly with commercial banks in executing primary block deals. Arbah Capital plans to be flexible enough to operate on a deal by deal basis which may include functioning as an arranger, originator, placement agent, promoter or as an underwriter as deemed appropriate.
