INVESTMENT IMPACT
Our investments are aligned with the Kingdom’s development through SEDCO’s investment themes, strategic plays, and focus on priority sectors.
Domestic Investment
For nearly half a century, SEDCO has been empowering local businesses and communities, propelling them toward prosperity.
PORTFOLIO
DIRECT INVESTMENTS
Publicly listed securities in KSA’s Main Market (Tadawul) and successful private companies in key sectors aligned with Saudi Vision 2030 and SEDCO’s strategy.
Nahdi Medical Company
The region’s leading pharmacy chain, listed on the Saudi Exchange in 2022.
Acquired 2003 (50%)
Jamjoom Pharma
One of the fastest-growing pharmaceutical companies in MENA, which recently completed KSA’s biggest IPO of 2023.
Financial investment
Shariah-compliant bonds (Sukuk)
Sovereign fixed income securities issued by the Saudi Government or secondary market offerings through primary dealers elected by the NDMC.
Financial investment
AutoWorld
A wholly-owned subsidiary that is a pioneer in the field of operational lease and car maintenance.
Established — 1981
Elaf Group
Market-leader in travel, tourism, and hospitality; wholly owned by SEDCO Holding.
Established — 1981
SEDCO Capital
Regulated asset management subsidiary, functioning as a stand-alone entity providing Shariah-compliant, ESG-led asset management and investment advisory.
Established — 2009
Al Mahmal Facilities
Facilities management specialist also offering engineering and other services.
Established — 1988
Dar Al Fouad Hospital
Tertiary healthcare institution specializing in cardiology and oncology.
Acquired — 2006
Arabian Farms
A premier egg producer that has expanded into other poultry products as well.
Acquired — 1978
AlAndalus
The largest K12 educational group in the Western Province with more than ten educational complexes in seven cities.
Acquired — 2023
AlShiaka
Leading manufacturer and retailer of traditional ready-made thobes.
Acquired — 2015
INDIRECT INVESTMENTS
Investing with local fund and asset managers, such as in domestic Discretionary Portfolio Management (DPM), venture capital, and private equity funds targeting IT, logistics, and other sectors.
For nearly half a century, SEDCO has been empowering local businesses and communities, propelling them toward prosperity. We are proud of our track-record; investing in leading Saudi companies in crucial industry sectors. Today, we continue to actively seek investment opportunities that spur real economic growth and social development in the Kingdom.
As we transition into an active financial investor role; we are refining our focus, exploring fresh domestic investment prospects, venturing into new asset classes, and defining clear performance metrics for our portfolio. We are sector-agnostic in our approach, while prioritizing focus-sectors such as healthcare, logistics, education, and hospitality; leveraging our existing exposure and embracing new sectors where strategic opportunities beckon. This shift underscores our dynamic stance as we navigate the evolving investment landscape and contribute to the unfolding narrative of economic growth and diversification in Saudi Arabia.
Throughout this evolution, our commitment to fostering economic growth and societal advancement remains unwavering. We will continue to work with premier, like-minded partners; cementing alliances that will enhance our portfolio and ultimately fortify our engagement with the Kingdom’s economic trajectory.
In 2023, SEDCO’s domestic investment position spans a diverse range of sectors, company sizes, and asset-classes; including direct investments in public and private companies, and indirect investments, new deployments in Discretionary Portfolio Managed public equities, Shariah-compliant bonds (Sukuk), and Private Equity/Venture Capital funds.
True to our values
Our investments are resonant with the core values that define our company; ensuring we invest wisely and for the long-term, with the best interests of the Kingdom and our shareholders at heart.
SEDCO’s Investment Policy Statement (IPS) serves as the guiding framework for every investment decision we make; clearly outlining criteria such as preferred sectors/themes, asset classes, ticket sizes, expected returns, equity interests, and levels of engagement.
Exhaustive due diligence on potential opportunities is a vital process within our investment strategy. Rigorous background checks, coupled with financial, legal, and commercial assessments, ensure any investments not only align with our financial objectives but also mirror our deeply ingrained commitment to sustainability, transparency, accountability, and ethical business practice. Regular performance reviews of our investments provide ongoing monitoring and scrutiny to maintain compliance with regulations and consistency with our goals and values.
12.5%
Stake in AlAndalus
Through a share swap exchanging SEDCO’s ownership in Yusr.
Fueling our investments
SEDCO’s finance function supports the primary investment pillars: Domestic Investment and Real Estate Group, ensuring sufficient liquidity for operations and enabling timely deployments that are fundamental to our engagements as an active financial investor. Strengthening these efforts, a strategic financing plan is being developed for new investments: involving the establishment of bank facilities allocated to each portfolio and leveraging current assets as collateral to minimize the cost of financing.
We achieve dynamic and highly effective liquidity management by optimizing cash flows, proactively borrowing against liquid assets in the portfolio, and generating returns from Murabaha deposits and sovereign sukuk.
Priority sectors
Healthcare
Education
Hospitality and tourism
Logistics
Asset management
Facilities management
Other
(Agriculture, retail, and food
processing)
Domestic investment highlights 2023
Our Domestic investment portfolio witnessed strong growth in 2023 through additional investments as well as robust value creation from existing and new investments. Funds deployed during the year strengthened our efforts at diversification and developed our portfolio in line with business goals.
After approval of SEDCO’s Public Equity investment policy in late 2022, we re-initiated targeted direct equity investments in 2023 with the execution of a novel open-market share accumulation strategy in the Saudi main market.
SEDCO’s first cornerstone investment in the Saudi Main Market, of around SAR 210 Mn, in Jamjoom Pharma. Subscription to 3.49 million shares at the IPO, making SEDCO its single largest institutional investor. Jamjoom’s listing was Saudi Arabia’s biggest IPO of 2023 and SEDCO’s investment has since doubled in value.
Share swap transaction involving exchange of SEDCO’s 100% ownership in Yusr International School (Yusr) for a minority stake in AlAndalus Educational Company (AlAndalus), the largest K12 educational group in the Western Province with more than 10 educational complexes across seven cities, boasting a track record stretching back to 1984. SEDCO Holding comes in as an institutional partner with resources and strategic expertise to ready the brand for a potential IPO in the medium term, in line with Andalus Education Company’s growth trajectory to expand and capitalize on educational sector opportunities in the Kingdom. SEDCO’s CIO for DI serves on the Board for AlAndalus.
SEDCO Capital completes second capital increase raising an additional SAR 600 Mn to acquire Atelier La Vie.
Expansion into new asset classes (PE and VC funds), through the Saudi Healthcare Opportunities Fund.
Continued investments in Discretionary Portfolio Managed (DPM) public equities and Sukuk. SEDCO’s DPM investment program was approved and initiated in the fourth quarter of 2022.
PORTFOLIO HIGHLIGHTS 2023
Nahdi continues to expand in the healthcare sector, opening 5 Nahdi Care clinics during the year and targeting 7 clinics by the end of the first quarter of 2024. Nahdi’s presence in the United Arab Emirates was also strengthened by opening 5 additional pharmacies in 2023, bringing the total number in the UAE to 12.
SEDCO Capital completed its second capital increase raising an additional SAR 600 Mn to acquire Atelier La Vie, a new and attractive addition to the SC REIT portfolio. The property is located in a premium location on King Abdulaziz Road in Jeddah.
Elaf celebrated the official opening of the Joudyan Red Sea Mall Hotel, a 5-star property with 132 rooms and 23 suites, in October 2023.
AlAndalus opened 2 new campuses, in Jeddah and Abha, during the academic year 2023/24.
Al Mahmal recorded strong performance and growth due to new contracts and change in revenue mix with relatively higher margin refurbishment and restoration work. An executive committee was also formed to oversee the company’s strategic transformation.
DOMESTIC INVESTMENT OUTLOOK FOR 2024
Our domestic investments will continue to support Saudi Vision 2030 and the Kingdom’s development through SEDCO’s investment themes, strategic plays, and focus on priority sectors such as healthcare, hospitality, logistics, and education. Continued diversification of our portfolio to include new and varied asset classes will help achieve a balance between improving returns and dividend distributions while effectively managing risks.
While continuously exploring M&A opportunities to enhance the growth and expansion of our portfolio companies, we will actively implement strategic options for private direct investments with the aim of reducing our level of involvement in operations.