The most innovative product in Saudi Arabia 2023: Sidra Capital, Sidra Income Fund II
Founded in 2009, Sidra Capital is a pioneer of private Islamic finance in Saudi Arabia, with offices in Riyadh, Dubai, Singapore and London. Licensed and regulated by the Saudi Arabian Capital Market Authority, Sidra’s Shariah-compliant asset business focuses on alternative asset classes, real estate and private finance and private equity.
Under chairman Hani Othman Baothman, the firm offers corporate restructuring, financial advisory and asset management services for high net-worth individuals, privately owned companies, family offices, foundations and governments.
The firm launched the Sidra Income Fund II in October. What it lacks in scale, with assets of around $100 million, it makes up for in market impact. The fund is a dollar-denominated investment vehicle focusing on commodity export trade within the Asia-Pacific region. It focuses on the export of branded solid fuel from Indonesia to trading houses and end users in India, China, Singapore and Malaysia.
Sidra’s fund facilitates commodity supply-chain transactions with fully funded and irrevocable letters of credit. By securing trades end to end via US dollar-denominated agreements issued by banks with strong credit ratings, investors are protected against foreign-exchange and payment risk.