Sukuk Capital
Sukuk Capital
Is a leading Saudi Fintech company in the field of investment and Islamic finance, founded in Riyadh in 2020 after its founders noted that there is no channel available to offer debt instruments in volumes below SAR 240 million, the company specializes in issuing and trading Islamic Sukuk.
Sukuk are financial instruments of equal value, representing common shares in the ownership of assets (objects, benefits, services, or a mixture of objects, benefits, money and debts), already existing, or will be created from the proceeds of the subscription, and are issued through various Sharia contracts.
The company provides Sharia-compliant financing solutions with the aim of finding alternative financing options for SMEs and individuals who wish to comply with the provisions of Islamic Sharia in the field of finance and investment, as it has financed more than one billion riyals since the beginning of its work in May 2021, for more than 70 companies operating in various sectors.
These financing solutions are customized for each customer to suit their needs and requirements, with a high financing ceiling for companies of up to SAR 30 million. This is done fully electronically using the latest technologies and financial methods, where companies are financed within three working days and arrangement for the issuance of sukuk and covered by investors within a working week, with a specialized and highly experienced team in the field of financing, and three types of financing are provided:
- Working Capital Financing
- Project Financing
- Asset Purchase Financing
The diversified portfolio provided by Sukuk Capital has a minimum investment amount of SAR 1,000, also Sukuk Capital seeks to diversify the portfolio's investments as they reduce investor investment risks, requiring the collection of different investment assets in each portfolio such as shares, real estate, and fixed income instruments. Also, the advantage of investing in Sukuk instruments is that it provides a periodic dividend (quarterly, biannual, annual) with high annual returns compared to other asset classes such as stocks, real estate, and investment funds.
Activities of Sukuk Capital:
1. Issuance of instruments: Sukuk Financial Company works on issuing Islamic Sukuk, which are considered Sharia-compliant investment instruments, as these tools are used to raise funds to finance various projects and investments, and their methodology in Sukuk depends on studying the advanced companies for financing in-depth and using a credit system that contains more than 500 coefficients and calculation equations.
2. Funding Arrangement: Sukuk Capital provides Islamic Finance Arrangement services to companies requiring Shari 'a-compliant financing. This includes providing financial advice, arranging subscriptions, and borrowing in a manner consistent with Islamic law.
3. Spread Awareness: Sukuk Financial Company seeks to spread awareness about Sukuk instruments and Islamic finance through various educational sources on its website such as articles, seminars, and videos, with a view to enhancing participants' understanding of Sharia-compliant investment tools and expanding the investor base.
Sukuk’s Mission:
It seeks to contribute to economic development and ensure the sustainability of resources with high efficiency:
Development: in support of the expansion of economic projects that contribute to raising the gross product and providing jobs
Sustainability: In preserving money and investments of the participants in investments and ensuring their sustainability by directing them to active projects.
Efficiency: working to develop and automate the financing and investment operations to reach the highest possible technological and technical efficiency.
Members of the Board of Directors:
The Board of Directors of the Financial Sukuk is composed of five members with extensive experience and knowledge in the financial field.
- Abdulaziz Al-Sayyari: Founder and member of the Board of Directors
- Abdulaziz Al-Adwani: Chairman of the Board of Directors
- Ahmed Al-Qasabi: Chief Executive Officer
- Fahd Kurdi: Member of the Board of Directors
- Abdullah Al-Ajaji: Member of the Board of Directors
Establishment of financial Sukuk:
• The Financial Sukuk Company was established in April 2020 to be offered and investigated tools
• A permit was obtained from the Capital Market Authority in November 2020
• The first Sukuk was issued in May 2021 and was a leading company in the health sector in the field of providing health services to patients, where it was agreed and signed with it to finance the company's capital expansions by completing the construction of a medical complex in Jeddah.
Sukuk risk:
The investor must know that investing in startups with high-risk bonds platform, and may lead to full loss, the more the expected return from investment increases the risk of loss, here are some of the most prominent risks associated with financial sukuk:
- The risks of failure to achieve strategic goals
- The operating risks resulting from the incompetence of human resources management
- Legal risks related to the process of offering instruments
- Risks of investing in debt tools
For more information about registration in the financial sukuk, please visit the following link https://sukuk.sa/termsofservice
Finally, we present to you a podcast of Sukuk Capital:
Click on the image, to listen to the Podcast!
Resource:
https://www.argaam.com/ar/article/articledetail/id/1613766
Prepared by:
- Munirah waleed Alsalem
- Sarah Khalid Alsalem
- Joud Alfadhel