OB – Fund for Direct Financing
OB - Fund for Direct Financing
Fund Details
The fund primarily aims to achieve returns for investors through engaging in direct financing activities that comply with Islamic Sharia principles for technology entities, such as e-commerce stores and emerging tech companies like Saudi tech applications. The financial portfolio that the fund will offer beneficiaries includes working capital financing to support the operational purposes of such entities, such as marketing, inventory support, and other short-term operational expenses.
| Base Currency | Saudi Riyal |
| Fund Category | Private Fund - Direct Financing Investment Fund |
| Shari'ah Compliant | Shari'ah Compliant |
| Capital | Minimum of 50 million Saudi Riyals, with a target of 100 million Saudi Riyals |
| Evaluation Period | End of each fiscal year |
| Fund Duration | 3 years with the option to extend twice for one year each (3+1+1) |
| Unit Subscription Price | 1 Saudi Riyal |
| Minimum Subscription | Each investor must subscribe to a minimum of 200,000 units, equivalent to 200,000 Saudi Riyals. Additional units can be subscribed in multiples of 10,000 Saudi Riyals. |
| Profit Distribution: | A portion of the profits earned during the fund's duration is distributed to unit holders semi-annually, and the Fund Manager may choose to distribute dividends on quarterly basis when profits and cash flows stabilize. |
| Risks | The fund is classified as a high-risk category fund. |