Investments

Saudi’s Abyan Capital raises $18 million Series A for its robo-advisory platform

Riyadh-based investment platform Abyan Capital has raised $18 million in a Series A round led by STV, it announced on Thursday. The round also included participation from Saudi’s Wa’ed Ventures and RZM Investment.

Founded in 2021 by Abdullah Aljeraiwi, Omar Almania, and Saleh Alaqeel, Abyan Capital launched its Shariah-compliant robo-advisory platform in 2022 to make it easy for an average user in Saudi to save and invest.

According to its website, Abyan Capital allows users to open their account on its platform (available on iOS and Android) in just three minutes and deposit money to start investing. The users get a portfolio recommendation based on their risk and other preferences during their onboarding.

The platform allows users to invest in a mix of sukuks, real-estate, and local and international stocks. The low-risk portfolio relies heavily on sukuks and high-risk on stocks.

Abyan charges users a 1 percent annual fee for managing their investments, which is billed monthly. Sarwa, a UAE-based robo-adivsory platform, charges between 0.5 to 0.85 percent, according to their website.

Abyan Capital claims to be the first robo-advisor in the Kingdom and has “exceeded deposits of over 1.4 billion Saudi Riyals and invested more than 100,000 portfolios” since its launch. The startup plans to roll out new products to become a “digital retail investment house,” its co-founder and CEO Abdullah Aljeraiwi said in a statement.

He also explained that they started the company to simplify personal investments for everyone in Saudi, regardless of their financial literacy level “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.”

Saleh Alaqeel, co-founder and COO of Abyan Capital, commenting on the investment, said, “This funding highlights the potential of Saudi Arabia’s burgeoning modern investment industry. Since our launch, we’ve introduced several unique retail investment offerings, including children’s portfolios, card-based recurring investments, and high-yield savings portfolios, among others.”

Yazeed Alturki, Principal at STV, said, “Abyan Capital stands out by unlocking the SAR +300 billion investment management and wealth advisory sector for investors from all backgrounds in Saudi Arabia, through its mobile-first, robo-advisory model. In a short period of time, Abyan has enabled a large base of first-time investors to access multiple wealth management solutions, underscoring the team’s commitment to innovation and inclusivity.”

The startup plans to use the funds to further enhance its platform, expand its product offering, and accelerate its growth.

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