January 18: Alqemam to Issue SAR 10M Murabaha Sukuk in 20 Tranches
Alqemam for Computer Systems plans a SAR Murabaha sukuk of SAR 10 million offered in 20 tranches via Afaq Capital’s CMA-regulated online platform. For German investors, this Saudi riyal issuance shows how digital platforms are widening access to Sharia-compliant debt. The first tranche is SAR 500,000 and proceeds will fund projects. We explain what the Alqemam sukuk program means, how risks and returns work, and what to watch before allocating capital.
Deal snapshot and why it matters
Alqemam plans a SAR Murabaha sukuk totaling SAR 10 million, to be issued in 20 tranches, beginning with SAR 500,000, on Afaq Capital’s CMA-regulated online platform. The program funds company projects and signals growing digital placement of Sharia-compliant debt in Saudi Arabia. Details were reported by Saudi outlets and confirm the structured rollout and regulatory oversight source.
This SAR Murabaha sukuk highlights three shifts: digitized investment flows, broader SME financing, and a deeper private debt market in the Gulf. For Germany-based investors, it offers sector diversification and exposure to Saudi growth. The Alqemam sukuk program also shows how regulated platforms can standardize documentation, improve audit trails, and shorten timelines from announcement to funding.
What German investors should consider
A SAR Murabaha sukuk pays a profit rate derived from cost-plus sales, not interest. Returns depend on the contract rate, schedule, and credit strength of the issuer. Key risks include SME credit risk, Saudi riyal to euro currency risk, and refinancing risk across tranches. Investors should expect limited secondary liquidity and plan for hold-to-maturity where possible.
Direct access to a SAR Murabaha sukuk may be limited to qualified buyers. Many Germany-based investors gain exposure through UCITS sukuk funds or private banks. If considering direct participation, confirm Afaq Capital CMA licensing, investor eligibility, and full KYC. Review Arabic and English documents, legal opinions, and platform settlement procedures before any commitment.
Key terms to review before allocating
For any SAR Murabaha sukuk, confirm the profit rate, compounding method, and payment frequency. Check the tenor, amortization, and whether profit or principal steps up over time. With 20 tranches, pricing may vary by tranche due to timing or demand. Align tranche calendars with your cash flows and portfolio risk limits.
Clarify security packages, if any, and whether claims are recourse to operating assets or an SPV. Review covenants on leverage, liquidity, and information reporting. Confirm the stated use of proceeds for projects and the reporting cadence. For the Alqemam sukuk program, require clear disclosure on collateral, waivers, and remedies in case of covenant breaches.
Macro context and liquidity
Saudi riyal issuance is growing as SMEs adopt online platforms that are regulated by the CMA. A CMA-regulated channel can improve transparency and investor protection. The SAR Murabaha sukuk by Alqemam adds to this trend, signaling broadening access to Sharia-compliant funding in the Kingdom source.
Pricing for a SAR Murabaha sukuk will reflect SME credit, tenor, and market demand. Secondary trading for smaller private sukuk is often thin, so investors should assume limited exit options. Use conservative position sizing, target hold-to-maturity, and compare terms with rated GCC sukuk as context, while noting differences in scale and liquidity.
Final Thoughts
Alqemam’s SAR Murabaha sukuk signals how regulated online platforms are expanding SME funding in Saudi Arabia. For German investors, the opportunity is exposure to a growing tech-focused issuer and a diversifying asset class. The trade-offs are currency risk, SME credit risk, and likely low liquidity. Before allocating, request the full term sheet, profit rate, tenor, and tranche calendar. Check security, covenants, and reporting obligations. Verify Afaq Capital’s CMA-regulated process and investor eligibility. If direct access is not possible, consider sukuk funds that disclose Saudi exposure. Size positions conservatively, plan for hold-to-maturity, and review updates as new tranches are offered.
FAQs
What is a Murabaha sukuk and how does it pay returns?
A Murabaha sukuk finances a cost-plus sale where investors receive a pre-agreed profit rather than interest. Cash flows depend on the profit rate, payment schedule, and issuer performance. It is Sharia-compliant and structured through asset-backed contracts that document the sale price and deferred payments to investors.
Why is this issuance relevant to investors in Germany?
It shows growing digital access to Sharia-compliant debt and offers diversification beyond euro credit. The sukuk is denominated in Saudi riyal, so returns in euro will vary with currency moves. It can complement global bond allocations, especially for investors seeking exposure to Saudi corporate growth.
Can EU retail investors participate directly in this sukuk?
Access may be limited by platform rules, CMA regulations, and investor qualification. Many EU investors use sukuk-focused UCITS funds or private banks for exposure. If direct participation is possible, confirm eligibility, KYC requirements, documentation language, settlement processes, and applicable investor protection measures beforehand.
What key documents should I review before investing?
Ask for the term sheet, offering circular or information memorandum, legal opinions, and any Sharia board approval. Review profit rate mechanics, tenor, security, covenants, risk factors, use of proceeds, and reporting. Verify platform licensing, settlement, and disclosure standards to ensure alignment with your internal risk policy.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
