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Saudi Riyal Murabaha Fund

Al-Murabih Fund

Bank AlBilad offers this fund to its customers who look for a secure and yet lucrative investment. Customers can invest their funds in this Saudi Riyal denominated fund in accordance with Islamic Sharia rules. Your funds will be invested in Murabaha based transactions including purchasing of various types of hot commodities – except gold and silver – and then reselling the same at a mark up over its purchase price.

Fund Objective

The Saudi Riyal Murabaha Fund, Al-Murabih, is designed to protect your principal investment and to achieve reasonable return by way of Murabaha based transactions that do not conflict with Sharia rules. Investment in this fund could be a suitable investment tools to protect your principal investment against inflation consequences.

Features of Al-Murabih

Al-Murabih Saudi Riyal denominated fund from Bank AlBilad offers a range of unique features, including, for example:

  • Achieve Halal (permissible) returns given the fact that the Fund is Sharia compliant.
  • Low risk factor with high liquidity holdings (you can liquidate your investment immediately whenever you need to have cash money).
  • The Bank's vast knowledge of best investment opportunities thereby relieving the customer from the burden of searching for other investment instruments.
  • Easy subscription procedure with partial and full redemption (withdrawal) options.
  • Low commission rates on investment services.

Fund Properties

Type of Fund Open-end fund
Strategy of Fund Cash management through efficient investment in Sharia permissible Murabaha trade transactions
Currency of Denomination Saudi Riyal
Other currencies affecting the Fund N/A
Risk level Low
Bench mark Monthly average return on Murabaha transactions net of management fee.
Initial Unit price SR 1
Minimum subscription SR 8000
Maximum additional subscription SR 2000
Minimum redemption SR 2000
Subscription fee N/A
Valuation price Applications received before noon each business day shall be priced using the valuation price of the same day.
Valuation day End of each business day
Date of announcement Every business day
Date of redemption Second business day after redemption application is submitted before 12:00 noon. Application received after this deadline shall be carried over for the next day.
Redemption fee N/A
Management fee 0.10% p.a.
Fund Manager Bank AlBilad represented by its Asset Management Division
Definition of Business Day The days on which Saudi banks open for business.

Fund Development Guidelines

In developing and managing its mutual funds, Bank AlBilad uses several standard guidelines to design the investment products and determine its identity based on customer expectations. The following significant considerations are taken into account by Bank AlBilad in designing and selecting mutual funds:

Low Risk: The Bank continues to conduct financial studies designed to ensure that the return on the proposed investment is equal to the underlying potential risks. It also gives preference to investment products that do not show high volatility over a short period. The overall investment approach used by Bank AlBilad is prudent. The Bank avoids offering high-risk investment products.

Capital Protection: Although achieving the highest possible return is an essential consideration in investment world, we at Bank AlBilad pay more attention to capital protection against any high risks and market fluctuations.

Efficient Asset Management: Bank AlBilad is keen on attracting and recruiting the highest caliber financial managers for each investment product. It also follows a policy of integrating the interests of investors with those of the managers through investment in the same fund in order to ensure the highest possible performance and consequently the higher profits.

Affordable Requirements

  • Open a current account with Bank AlBilad
  • Sign Fund Agreement
  • Complete Fund Subscription Application Form
  • The customer should be at least 18 years of age. For those below 18, investment can be made under the auspices and supervision of a legal guardian or sponsor.
  • Mail address


  • Valid ID (National Identity Card or Family Registration Book), Iqama and passport for expatriates.