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GCC dividend strategies gain traction as investors seek steady income in volatile markets
SICO Capital launches GCC Dividends Fund targeting income and long-term growth by investing in listed companies with sustainable dividend policies
- PUBLISHED: Sun 21 Jun 2026, 1:22 PM
Investors across the Gulf are increasingly turning to dividend-focused strategies as they seek stable income streams and reduced volatility amid uncertain market conditions. With interest in income-generating assets rising, asset managers are expanding offerings that balance yield and long-term capital growth through exposure to fundamentally strong, dividend-paying companies.
Against this backdrop, SICO Capital has launched a new GCC-focused equity fund designed to tap into this growing demand. The open-ended fund aims to deliver quarterly income while targeting capital appreciation by investing in listed companies with sustainable dividend policies and strong financial fundamentals.
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The investment strategy combines quantitative screening techniques with in-depth fundamental analysis to identify companies demonstrating resilient business models, sound balance sheets, and disciplined capital allocation practices.
The fund offers two-unit classes to accommodate different investor profiles. Class A is intended for institutional investors with a minimum initial subscription of 10 million Saudi riyals, while Class B is designed for investors with a minimum subscription of 10,000 riyals. The fund is denominated in Saudi Riyals and offers subscriptions and redemptions twice weekly, subject to the fund’s terms and conditions. Albilad Capital has been appointed as the fund’s custodian, providing independent oversight in line with applicable regulatory requirements.
Wissam Haddad, CEO of SICO Capital, added: “Our investment framework integrates quantitative analysis with active fundamental research to support disciplined portfolio construction and risk management. By focusing on companies with sustainable dividend practices, the fund is structured to serve investors seeking income-oriented equity exposure within a professionally managed framework.”
Commenting on the launch, Ali Marshad, Deputy Group CEO - Buy Side at SICO BSC (C), stated: The launch of the SICO GCC Dividends Fund by SICO Capital reflects our continued commitment as a Group to expanding our investment solutions in line with the evolving needs of investors in Saudi Arabia. Through this new offering, which supports a more balanced portfolio construction approach, the Fund’s strategy is designed to play a dual role by enhancing yield through regular distributions from companies with stable returns, while focusing on reducing the relative impact of market fluctuations compared to growth strategies that invest in high-growth companies. The SICO Capital Equities Asset Management team aims to provide investors with access to dividend-focused equity opportunities across regional markets, enabling them to add an investment category that complements fixed income investments while contributing to building more diversified and balanced portfolios capable of delivering sustainable performance across different market conditions.”
