Euromoney 40th anniversary special: Focus on Jadwa

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MIDDLE EAST & AFRICA

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Unlike many of the 100-odd new Saudi investment firms, Jadwa is not just a brokerage or an under-employed Saudi equivalent of an international firm.

Created three years ago by Prince Faisal Bin Salman and other Saudi investors, Jadwa is Shariah compliant and has the sixth-largest asset management portfolio in the Kingdom.

In April, the firm had to abandon efforts to raise an equivalent of $3.3 billion through sukuk and short-term debt for Jabal Omar, a company targeting real-estate development in Mecca. Nevertheless, as opportunities in Saudi debt capital markets grow, Jadwa hopes to benefit from a market until now dominated by HSBC, where most of Jadwa’s debt capital markets team once worked.

Jadwa and Calyon are co-advising on an acquisition of several hundreds of millions of dollars in the Saudi agriculture sector. Jadwa hopes to list companies once the market recovers.

In the autumn of 2008, Khazanah, Malaysia’s state investment arm, took a 10% stake in Jadwa for an equivalent of $75 million.

"The partnership with Khazanah will bring us more private equity opportunities in Asia and access to CIMB’s sukuk distribution and structuring capabilities," says Ahmed Al Khateeb, Jadwa’s chief executive, previously head of private banking at Saudi British Bank (Khazanah owns 20% of CIMB, a Malaysian Islamic bank).