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As SEDCO approaches 50 years of service to the Kingdom, we remain dedicated to empowering domestic businesses and communities. By identifying strategic investment opportunities that drive economic and social progress, we continue to advance the national objectives of Saudi Vision 2030.

Our Values-Driven Investment Philosophy

At SEDCO, our investment strategy is anchored in a commitment to long-term, responsible value creation that advances the interests of our stakeholders and Saudi Vision 2030. Our Investment Policy Statement (IPS) serves as the formal framework for capital allocation. It defines our core investment criteria, including target sectors and themes, asset class allocations, ticket sizes and expected returns, engagement levels, and equity interests.

Every prospective investment undergoes rigorous due diligence, encompassing comprehensive financial, legal, and commercial assessments alongside background checks. Beyond the point of entry, we remain committed to elevating governance standards—particularly within our direct private investment portfolio. SEDCO relies on involvement through governance to generate value in its investments, rather than direct involvements in operational activities. This approach ensures all capital deployments meet our financial objectives while adhering to strict standards of sustainability, transparency, and accountability. Furthermore, ongoing performance reviews ensure continued alignment with our strategic mandates and regulatory requirements. Our investment (and disinvestment) strategies are also crafted to be aligned with the goals of Saudi Vision 2030.

Shariah compliance remains a fundamental condition for investment and ongoing ownership across all relevant investments. This standard is applied during the initial screening process and maintained throughout the entire ownership life cycle of every investment. We remain committed to elevating our governance standards, particularly within our direct private investment portfolio.

Key Investment Themes

  • Boosting private sector engagement in national development
  • Unlocking KSA's potential for leisure and tourism
  • Aligning with the Kingdom's global shift towards sustainability
  • Developing infrastructure that supports KSA's development goals
  • Localizing supply chains to promote national production

Refining Our Strategy

In response to the outcomes of a comprehensive strategic review reviewed in 2025, SEDCO Holding launched a new strategic cycle, marking a significant evolution in its role as an active financial investor. By balancing our portfolio with selective expansion into new sectors, we are focused on enhancing yield through prudent deployment across diversified asset classes, while maintaining the agility to respond to evolving market conditions.

Our strategy expands our sector focus to include industrial, manufacturing, consumer retail, information technology, financial services, and telecommunications, complementing our existing presence in healthcare, logistics, education, and hospitality and tourism. The strategic direction, will see a natural evolution toward reduced operational involvement, and continued exit from non-core sectors.

Expanded Sector Focus

Healthcare

Healthcare

Education

Education

Hospitality and Tourism

Hospitality
and Tourism

Logistics

Logistics

Asset Management

Asset Management

Other Sectors

Other

We have expanded our sector focus to enhance portfolio resilience, exposure and diversification by investing into a broader range of asset classes, including public equities, Discretionary Portfolio Management (DPM), private equity, venture capital, and fixed income. This diversification supports balanced asset allocation and risk management, while maintaining the flexibility to pursue a broad spectrum of opportunities.

As part of a broader Group-wide initiative, all policies and procedures are currently under review to ensure alignment with the Group strategy and governance framework. In parallel, the implementation of advanced reporting tools and AI-enabled platforms are being assessed to optimize portfolio oversight and reporting.

Investment Guidelines

SEDCO’s investment strategy allows for a wider sector focus while not restricting ourselves to specific sectors, and being open to all investment opportunities. This reinforced the importance of portfolio optimization and capital recycling, increasing the contribution of yield-generating investments and maintaining a balanced approach between growth and income investments.

Driving Value through Active Partnership

For investments where SEDCO holds a significant minority stake (generally 5٪ and above), our influence is primarily exercised through active representation in Boards and Committees, as well as strategic and financial performance monitoring.

SEDCO partners with portfolio companies through a multi-tiered engagement model, providing strategic guidance, financial oversight, and M&A support. As our investments mature, so has our intentional shift from operational involvement to a more strategic role, empowering management teams to lead independently.

All investments are managed in strict accordance with Shariah principles. We aim to Environmental, Social, and Governance (ESG) priorities into our core strategy by supporting Corporate Social Responsibility (CSR) initiatives, fostering robust internal governance, and managing risks to ensure the long-term sustainability and growth of our capital.

PORTFOLIO OVERVIEW

Direct Investments

Private investment through significant representation or whole ownership

AlAndalus Education Company
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The largest K12 educational group in the Western Province with more than 14 educational complexes in seven cities.

Acquired — 2023
Al Mahmal Facilities Services Company
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Facilities management specialist also offering engineering and other services.

Established — 1988
AlShiaka
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Leading retailer of traditional ready-made thobes.

Acquired — 2015
Dar Al Fouad Hospital
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Tertiary healthcare institution specializing in cardiology and oncology in Egypt.

Acquired — 2006
Elaf Group
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A long-established leader in travel, tourism, and hospitality; wholly owned by SEDCO Holding.

Established — 1981
SEDCO Capital
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Stand-alone subsidiary providing Shariah-compliant, ESG-led asset management and investment advisory.

Established — 2009

Continuous engagement and strategic partnership through public equity

Nahdi Medical Company
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Leading Saudi Arabian health and wellness retailer, operating the largest pharmacy chain in the Middle East.

Acquired – 2003 (50%)
Budget Saudi
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The largest auto rental and leasing company in KSA, and a leading player in the regional market.

Acquired – 2024 (8.96%)

Asset Allocation Overview

As at the end of 2025, the Corporate Investment portfolio remained diversified and broadly aligned with our Investment Policy Statement. Asset allocation remained within approved policy guidelines despite market volatility.

  • Public Equities: Represents the largest portion of the portfolio, though materially impacted by the overall decline in the Tadawul All Share Index (TASI) during the year.
  • Direct Private Investments: Remains the second largest component, with allocations broadly stable over the period.
  • Fixed Income and DPM: Allocations followed, supporting our liquidity and yield objectives.
  • Indirect Investments: Private equity and venture capital funds represented the smallest allocation but saw increased commitment activity.

CORPORATE INVESTMENT HIGHLIGHTS 2025

Arabian Farms: Executed a full exit in 2025. This divestment aligns with our strategic mandate to reallocate capital toward core, high-growth sectors. SEDCO had supported the Company's regional scaling and operational growth over several years, propelling it to become a trusted name in the poultry and agriculture sector, with a robust production footprint in Saudi Arabia and the UAE.
Nahdi Medical Company: Completed a partial exit in Q2 of 2025. This transaction allows the Group to reduce portfolio concentration while maintaining exposure to a high-quality, dividend-yielding listed asset. Nahdi is the largest retail pharmacy chain in Saudi Arabia and a cornerstone of the Kingdom's healthcare infrastructure. SEDCO has been instrumental in Nahdi's institutionalization and its transition to public markets.
Baraya Extended Care: Converted an indirect private equity allocation into a direct co-investment in Baraya Extended Care, consistent with the strategic objective of increasing exposure as a financial investor. Baraya is a specialized healthcare provider offering long-term medical care and rehabilitation services.
EW Partners: Committed capital to EW Partners, further strengthening our indirect private equity pillar and expanding our exposure to cross-border technological transfers. This partnership enables the Group to capture value from innovative sectors essential to Saudi Vision 2030’s digital transformation. EW Partners serves as a vital investment bridge between leading global technology ecosystems and the Saudi industrial landscape.
AlAndalus Education Company: Secured Tadawul and CMA approvals for the IPO of AlAndalus Education, with plans to proceed with a listing within a six-month window. As a key partner in the Company’s growth and governance, SEDCO’s efforts have positioned this prominent K-12 operator to unlock significant shareholder value while continuing its mission of academic excellence across the Kingdom.
Outlook to 2026: 50 Years of Impact

Over the years, the Corporate Investment portfolio has realized several notable milestones in alignment with SEDCO’s long-term objectives: monetizing mature assets through landmark IPOs and strategic exits, while optimizing holdings through sophisticated ownership restructurings. The successful execution of our recent strategic cycle has solidified our foundation as a disciplined financial investor. Having rebalanced our portfolio to prioritize diversification, liquidity, and enhanced dividend yield—and remaining closely aligned with the economic ambitions of Saudi Vision 2030—we now embark on a clear trajectory for our next phase of growth.