Riyadh-based investment platform Abyan Capital has secured $18 million in a Series A funding round, spearheaded by STV, as announced on Thursday. The investment round also witnessed the participation of Saudi’s Wa’ed Ventures and RZM Investment.
Founded in 2021 by Abdullah Aljeraiwi, Omar Almania, and Saleh Alaqeel, Abyan Capital ventured into the financial landscape with the launch of its Shariah-compliant robo-advisory platform in 2022. The platform aims to simplify the saving and investment process for the average user in Saudi Arabia.
Abyan Capital’s platform facilitates users in opening their accounts swiftly, with the process taking merely three minutes. Upon account activation, users can deposit funds to kickstart their investment journey. During the onboarding process, users receive personalized portfolio recommendations tailored to their risk appetite and other preferences.
The platform offers a diversified array of investment options, including sukuks, real estate, and local and international stocks. Risk profiles range from low to high, with portfolios curated accordingly.
Abyan Capital adopts a fee structure wherein users are charged a 1 percent annual fee for investment management, billed on a monthly basis. In comparison, UAE-based robo-advisory platform Sarwa levies fees ranging from 0.5 to 0.85 percent, as per their website.
Since its inception, Abyan Capital claims to have surpassed deposits exceeding 1.4 billion Saudi Riyals and facilitated investment in over 100,000 portfolios. Abdullah Aljeraiwi, co-founder and CEO of Abyan Capital, articulated the company’s vision to evolve into a “digital retail investment house” by introducing novel product offerings.
Aljeraiwi underscored the company’s mission to democratize personal investments in Saudi Arabia, irrespective of individuals’ financial literacy levels. He stated, “The idea of Abyan began as an effort to disrupt the asset management industry in the Kingdom for individuals, which is one of the objectives of the Financial Sector Development Programme.”
Commenting on the funding, Saleh Alaqeel, co-founder and COO of Abyan Capital, emphasized the transformative potential of Saudi Arabia’s evolving investment landscape. He highlighted Abyan Capital’s introduction of innovative retail investment solutions, including children’s portfolios and high-yield savings portfolios.
Yazeed Alturki, Principal at STV, lauded Abyan Capital’s pivotal role in democratizing access to investment management solutions in Saudi Arabia. Alturki commended the team’s commitment to innovation and inclusivity, acknowledging Abyan Capital’s significant strides in enabling first-time investors to navigate the wealth management landscape.
With the infusion of funds, Abyan Capital is poised to bolster its platform, diversify its product offerings, and expedite its growth trajectory, marking a significant milestone in its journey to redefine the investment landscape in Saudi Arabia.
