Thesis & Rationale
The Public Investment Fund (PIF) was established by Royal Decree dated 25-6-1391H. The motive behind the establishment of the Fund to provide funding for some capital projects that are of a commercial nature which are of great importance in the development of national economy and the private sector, which lacks the capacity to undertake alone, either because of lack of experience or inadequate capital, or both. Launched the Saudi Investment Bank offers six investment funds is different: Murabaha Fund in U.S. dollars, and the Global Fund justice, the Saudi Fund for shares, equity fund GCC countries and the United States of America Equity Fund, as well as a fund to finance trade in 2003, which has the highest return among similar funds in the Saudi market with the return of 3.28% during the past 12 months. Investment funds provide an opportunity for customers to easily share and diversify its investments commensurate with the investment goals and achieve the highest possible return. Saudi Companies Fund's objective to achieve capital growth over the long-term by investing in Saudi equities (excluding banks) registered in the Saudi stock market. Gulf Companies Fund aims to provide investors with capital growth over the long-term through investment in equities (excluding banks), investment funds and capital markets, most of which belongs to the markets of the Gulf states including Iraq and Iran.
SAIB Fund of Funds' aim is to make capital growth over the long-term by investing in a range of equity and capital markets products through the purchase of units in the funds, The Saudi Investment Bank. Trade Finance Fund's goal is to keep invested capital and achieving reasonable returns through direct participation in Murabaha transactions compliant with Islamic law. Murabaha Fund's aim is to support the U.S. dollar on invested capital and achieving reasonable returns through direct participation in Murabaha transactions compliant with Islamic law. Global Equity Fund's goal is to give investors with capital growth over the long-term by investing in global equities, investment funds and capital markets. Saudi Equity Fund aims to offer investors with capital growth over the long-term through investment in shares of companies registered in Saudi Arabia Saudi Stock Market. GCC Equity Fund aims to give investors with capital growth over the long-term through investment in shares of Gulf Cooperation Council countries, investment funds and capital markets.
Saudi Arabia began its economy development based on Shariah which spread the trade Islamic law in all of transactions and commercial projects. Some monetary institutions such as banks are very interested in Islamic economy after they had failed in the other systems. They found that all western companies are run economically based on the Islamic law.
Until the mid-twentieth century, it was not official Saudi money and banking system. Degree to which the funds were...