Sab Invest launched the Kingdom’s first quantitative ETF, which will track the S&P Saudi Domestic Shariah index, according to a statement. The fund will replace the Sab Invest MSCI Tadawul 30 Saudi ETF on Tadawul, a separate disclosure to Tadawul read.

The details: The Sab Invest Saudi Quant ETF is open to foreign investors in the local market and is expected to raise USD 100 mn from institutional and retail investors this year, Osama Alowedi, chief investment officer at Sab Invest, told Bloomberg.

The fund aims to achieve an annual return of 2% above the Saudi market, Alowedi added. Average annual gain for Saudi stocks from 2020 through 2024 was about 10%, according to Bloomberg.

SOUND SMART- Quant funds use quantitative analysis, where computers use algorithms to analyze large datasets and identify patterns and correlations. The data-driven approach — encouraged by increased data availability and advances in computing technology — aims to eliminate subjective biases from investment decisions.

Not the last one: “We are planning to launch other quant funds with different risk parameters,” Alowedi told the business news service on Tuesday.

On a roll: The Saudi Awwal Bank investment arm closed a USD 100 mn VC fund last week in partnership with Saudi Technology Ventures (STV). The fund offers shariah-compliant non-dilutive capital to tech startups in the Kingdom.

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