All of Tawuniya’s investments are Sharia compliant, organically excluding certain sectors such as tobacco and defense. Tawuniya’s Risk Management Team reviews and assesses the company’s various investment risks quarterly, while the overarching investment strategy of Tawuniya is evaluated and adjusted on an annual basis to ensure the company is responsive to the market. The observations and recommendations that arise in these meetings are then handed over to Tawuniya’s Investment Committee.
Under the direction of Tawuniya’s Investment Committee, Tawuniya invests in four different asset classes:
Deposits with banks
Fixed income investments
Equities
Alternative assets (private credit, private equity, real estate)
Saudi/GCC equities both are managed internally and through external fund manger, emerging and global equities are managed externally. Tawuniya is compliant with all national and international requirements regarding investment disclosures.
Due diligence process
When assessing an investment opportunity, Tawuniya adheres to a comprehensive due diligence process.
- Filtering out all investments that are not Sharia compliant
- Assessment of the Investment’s potential impacts on governance and economic stability, conducted by the Risk Management Committee
- Operations of the Company in question are evaluated for their stability and growth potential
- Legal due diligence
- Final review by Tawuniya’s Investments Committee
2022 Highlights
During the year under review the asset management business line contributed SAR 300 Mn. to Tawuniya’s total earnings before taxes and Zakat in 2022.
