Khalijia Invest has gone into liquidation following the cancellation of its licence by the Saudi Arabian CMA, Mena FM has learned.
On 29 January, the CMA officially cancelled the firm’s authorisation to conduct the securities businesses of dealing as agent, dealing as principal and underwriter, managing investment funds, managing client portfolios, arranging, advising and custody. Following the announcement, the Riyadh-based firm, which had authorised capital of SAR400m ($106m) at the end of 2011, started making plans to liquidate the business.
Khalijia was chaired by HH Prince Sultan Bin Mohammad bin Saud Al Kabeer and shareholders included Kuwait’s National Investments Company of Kuwait and Gulf Bank of Kuwait. The firm managed four funds: the GCC IPO Fund, the Khalijia Invest S&P Saudi Equity Shairah Index Fund, the Khalijia Invest Saudi Equity Find and the SAR Trade Fund. Company representatives refused to comment on the funds’ future and it is not yet known how investors will be impacted.
Saudi’s CMA has been clamping down on local asset managers in recent months. Ajeej Capital had its authorisation cancelled in October and Watheeqa Capital incurred a cancellation in December, while Al Mal Capital Saudi lost its licence on 1 January.
