Riyad SAR Trade Fund

The fund is an investment pool for Commodity Trading denominated in Saudi Riyal. The Fund manager will finance Murabaha deals through purchasing commodities and goods from established suppliers against immediate payment, and sell them at higher prices to reputable organizations on deferred payment terms on short term. It aims to achieve capital preservation and a reasonable return with low risk through investing primarily in Murabaha and short-term trading investments denominated in SAR compliant to Islamic shariah and secondarily in Sukuk. The fund will invest primarily in Shariah compliant commodity trading investments denominated in Saudi Riyal and secondarily in Sukuks. The Fund will reinvest the achieved profit from commodity trading investments and Sukuk in the same fund. The Fund manager will minimize the Fund risks through diversifying the Fund’s assets ideally in the light of correlation of different assets’ classes, return rates and due dates. A small cash balance is held for liquidity purposes.