Jadwa to develop non-profit sector investment funds

Saudi asset manager Jadwa Investments is partnering with the Saudi Ministry of Human Resources and Social Affairs (MHRSA) on the creation of an investment fund platform for local non-profit groups.

The sharia-compliant platform will initially comprise two investment funds designed to help non-profits preserve and grow their capital over a long-term investment horizon.

A memorandum of understanding (MoU) has been signed between Jadwa and the ministry. Jadwa will act as the sole fund manager and will provide operational as well as investment support.

“The ministry is keen to develop the financial capabilities of non-profit sector organisations in order to diversify their sources of income and enable them to continue practicing their work and achieve the goals for which they were established to the fullest extent,” said Ahmed Al Majed, Deputy Minister of the MHRSA.

“There is no doubt that establishing investment funds for non-profit sector organisations will be one of the main enablers and tools for the financial sustainability of associations,” he added.

It is not the first time that Jadwa has sought to develop funds for the non-profit sector. Back in October 2020 the asset manager linked up with the Ministry of Justice to launch an endowment fund, or waqf fund, to support families facing a loss of income as a result of Covid-19.

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