AL Mal UAE Equity Fund — Fund Information / Factsheet 2025

Jun 9, 2025

Al Mal MENA Equity Fact Sheet May 2025 NAV Per Unit: USD 11.78

==> picture [120 x 37] intentionally omitted <==

Fund Manager Commentary

May 2025 presented a complex economic landscape for the global markets, and they continue to experience volatility influenced by U.S. trade policies. A federal court ruling deemed former President Donald Trump’s broad use of tariffs under the International Emergency Economic Powers Act illegal, leading to a surge in global markets. However, an appeals court temporarily reinstated the tariffs, contributing to market uncertainty. However, it is to be noted the on YTD basis S&P500 and NASDAQ have recovered the steep losses that happened when the tariffs were announced. S&P 500 posted its best May since 1990, rising 6%, while Nasdaq Composite gained 3.7% and nearly 10%, respectively.

GCC economies navigated a complex landscape marked by global trade tensions and fluctuating oil prices. In its regional outlook, IMF revised its 2025 growth forecast for the region to 3%, down from 4.2%, citing rising global uncertainties, including trade wars and declining oil prices. Despite these challenges, the GCC's commitment to economic diversification, particularly through initiatives like Saudi Arabia's Vision 2030 and the UAE's investments in non-oil sectors, provided a buffer against external shocks. Notably, President Trump's May visit to Saudi Arabia, Qatar, and the UAE underscored the deepening economic and technological ties between the U.S. and the GCC, with a focus on artificial intelligence and data center infrastructure.

GCC stock markets reflected the broader economic uncertainties, as Dubai stock market index was up around 3.5% while the Saudi Index recorded a loss of 4.8% in May-2025. Kuwait stock market, in anticipation of reforms and new laws are leading in terms of YTD gains in GCC with the gain of 12.3% recorded till May-2025. The broader S&P Pan Arab Composites Index which we use as benchmark was down 1.4% in May while it is down 0.8% on YTD basis. On the corporate profits, net profits reported companies listed on GCC exchanges increased by 2.0% y-o-y during Q1-2025 to reach USD 58.6 Bn as compared to USD 57.4 bn in Q1-2024 according to research by KAMCO.

Capital markets activity remained robust, with 11 GCC IPOs raising a total of $1.6 billion in the first quarter of 2025, a 33% increase compared to the same period in 2024. We saw Dubai Residential REIT, launched by Dubai Holding, made a significant debut on the Dubai Financial Market (DFM) on 28 May 2025. The initial public offering (IPO) raised AED2.145bn, marking it as the largest REIT IPO in the GCC to date. The offering was oversubscribed by 26 times, prompting an increase in the offering size from 12.5% to 15% of the issued unit capital. On its first trading day, the REIT's unit price surged by more than 13%, evincing strong investor interest. We continue to participate in the IPOs to provide diversification to our portfolios.

==> picture [213 x 284] intentionally omitted <==

----- Start of picture text -----

Sector Allocation 29.2% - Financials
22.9% - Industrials
12.3% - Energy
8.8% - Real Estate
8.5% - Information Technology
5% - Consumer Staples
3.8% - Cash
3.7% - Materials
3% - Utilities
2.9% - Consumer Discretionary
Geographic Allocation
56.1% - Saudi Arabia
33.1% - UAE
4.2% - Qatar
3.8% - Cash
2.8% - Kuwait
----- End of picture text -----

==> picture [135 x 51] intentionally omitted <==

Objective

Achieve capital appreciation, primarily through investment in equity and equity related securities in the Middle East and North African markets.

	Performance1 1 Month	Fund -2.5%	Fund Performance Benchmark2 -1.4%	Alpha -1.1%
	YTD*	-3.4%	-0.8%	-2.6%
	2024	3.0%	1.9%	1.1%
	2023	23.1%	9.8%	13.3%
	2022	-0.9%	-5.9%	5.0%
	Since Inc.	63.1%	-17.5%	80.6%

1 Performance is net of fees; return is cumulative

2 S&P Pan Arab Composite Index

3 As of 28th May 2025

	Holding	Top 5 Holdings	% of Fund
	Emaar Properties Saudi National Bank		6.2 5.0
	Abu Dhabi Islamic Bank		4.2
	Dubai Taxi Company		4.0
	ADNOC Logistics and Services		4.0
		Fund Analysis
	Matrix4	Fund	Benchmark
	Standard Deviation	12.3%	12.4%
	Tracking Error	5.8%
	Beta No. of Holdings 4Calculated using 3-year weekly data	0.9 31
		Fund Information
	Fund Manager Inception Date	Faisal Hasan, CFA 15th June 2008
	Fund Size	USD 23 million
	Strategy Size	USD 250 million
	Domicile	Bahrain
	Currency	USD
	Subscription & Redemption	Weekly
	Min Subscription	USD 50,000
	Bloomberg Code	MALMENE BI
	Management Fee	1.75%
	Benchmark Index	S&P Pan Arab	Composite
	Fund Type	Open Ended
	Administrator	Apex
	Custodian	Standard Chartered

==> picture [251 x 152] intentionally omitted <==

----- Start of picture text -----

10Y Fund Strategy Performance
30 Al Mal MENA Equity Fund Benchmark
25
20
15
10
5
0
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25
----- End of picture text -----

Disclaimer

None ofthe information andopinions containedherein is intendedto form the basis for any investment or trading decision, andno specific recommendations are intended. The products andtransactions describedherein are not suitable for every investor. Such products and transactions are only suitable for sophisticated andknowledgeableprofessionalusers offinancialinstruments andare structured and customized to the needs andobjectives ofeach investor. The information andopinions contained herein have been preparedfor informational purposes only and do not constitute an offer to sell, or solicitation of an offer to purchase, any security, any commodity futures contractor commodity-related product, any derivative product, or any trading strategy or service described herein. Neither Al MalCapital PSC nor any ofits affiliates, directors, authorized managers and/or employees accepts liability for any loss arising from the use ofor makes any representation as to the accuracy or completeness ofthe terms andconditions ofproducts and transactions described herein. Finalized terms and conditions are subject to further discussion and negotiation and will be determined in part on the basis of pricing and valuation models, data, and assumptions that are proprietary to AlMal Capital and its affiliates. No assurance can begiven that a product or transaction can, in fact, be executed on any representative terms indicated herein.

Al Mal UAE Equity Fact Sheet May 2025 NAV Per Unit: AED 2.01

==> picture [120 x 37] intentionally omitted <==

==> picture [80 x 58] intentionally omitted <==

Fund Manager Commentary

May 2025 presented a challenging yet resilient picture for global markets, driven by developments in U.S. trade policy. A federal court ruling invalidated former President Trump’s expansive use of tariffs under the International Emergency Economic Powers Act, sparking a short-lived rally across global equity markets. However, the uncertainty returned as an appeals court temporarily reinstated the tariffs, clouding investor sentiment. Despite this, U.S. equities showed strong recovery, with both the S&P 500 and Nasdaq fully reversing earlier losses. The S&P 500 recorded its best May performance since 1990, rising 6%, while the Nasdaq Composite climbed nearly 10%, supported by a rebound in technology and consumer sectors. In UAE, the S&P UAE Domestic 10% Capped Index posted a strong YTD 7.5% gain year-to-date through May 2025, reflecting improved confidence.

Objective

Achieve medium to long-term capital growth by investing primarily in equities listed on the UAE Exchange.

Fund Performance

	Performance1	Fund	Benchmark2	Relative Perf.
	1 Month YTD* 2024	3.9% 3.7% 17.9%	5.1% 7.5% 12.2%	-1.2% -3.8% 5.7%
	2023	14.5%	7.6%	6.9%
	2022	6.2%	5.4%	0.8%
	Since Inc.	190.0%	-9.7%	199.7%

1 Performance is net of fees; return is cumulative

2 S&P UAE Domestic 10% Capped Index

In the UAE, the economic momentum remained robust despite the global backdrop. GDP growth for 2025 is projected at approximately 5%, underpinned by resilient domestic consumption, ongoing structural reforms, and strong performances in tourism, logistics, and financial services. Non-oil GDP is expected to grow at 4.0% this year and 3.8% in 2026, well above the global average. President Trump’s visit to the UAE in May reinforced deepening bilateral ties, with discussions centered around cooperation in advanced technologies, particularly artificial intelligence and data center development, further bolstering the UAE’s strategic positioning.

3 As of 28th May 2025

Top 3 Holdings

		Top 3 Holdings
	Holding		% of Fund
	ADNOC Logistics and Services Emaar Properties Emirates NBD		6.0 5.9 5.5
		Fund Analysis
	Matrix4	Fund	Benchmark
	Standard Deviation Tracking Error Beta	10.1% 6.2% 0.7	13.6%
	No. of Holdings	25

Dubai continued to cement its position as a global hub for creative industries, retaining its No. 1 global ranking for Greenfield FDI projects in the sector for the third consecutive year. In 2024, it attracted 971 cultural and creative projects with total FDI capital inflows of AED18.86 billion, generating over 23,500 new jobs. The real estate sector remained a pillar of strength, with sales buoyed by both resident and foreign demand. Despite elevated interest rates, strong rental yields are keeping buyer interest high. Banking system liquidity remains ample, with deposit growth outpacing credit expansion, reinforcing macroeconomic stability. Dubai-listed companies saw their net income jump 35.5% y-o-y to AED 29.2 bn in 1Q 2025, whereas ADX-listed firms posted a 10.2% y-o-y increase to AED 34.2 bn, according to research from KAMCO.

4 Calculated using 3-year weekly data

These trends collectively point to a market well-positioned for growth once global uncertainties subside. With increasing alignment to international capital flows, the UAE’s equity markets are becoming more sensitive to shifts in global investor sentiment. On the primary market side, Dubai Residential REIT, launched by Dubai Holding, made a landmark debut on the Dubai Financial Market. The IPO raised AED2.145 billion, making it the largest REIT listing in the GCC. Oversubscribed 26 times, the REIT’s unit price surged over 13% on listing day—underscoring strong demand for yield-driven real estate exposure and investor confidence in Dubai’s residential leasing market.

		Fund Information
	Fund Manager	Faisal Hasan, CFA
	Fund Size	AED 53.6 million
	Domicile Currency	UAE AED
	Subscription & Redemption	Weekly
	Min Subscription	AED 40,000
	Management Fee	1.50%
	Performance Fee	20% over 10% hurdle with high watermark
	Financial Year End	31st December
	Benchmark Index	S&P UAE Domestic 10% Capped Index
	Fund Type	Open Ended
	Administrator & Custodian	Standard Chartered

==> picture [61 x 6] intentionally omitted <==

----- Start of picture text -----

Sector Allocation
----- End of picture text -----

==> picture [503 x 280] intentionally omitted <==

----- Start of picture text -----

24.2% - Financials
20% over 10% hurdle with high
Performance Fee
20.4% - Industrials watermark
Financial Year End 31st December
17.8% - Real Estate
Benchmark Index S&P UAE Domestic 10% Capped Index
15.7% - Energy
Fund Type Open Ended
8.4% - Consumer Discretionary Administrator & Custodian Standard Chartered
6.1% - Utilities
2.7% - Health Care
2.6% - Cash 10Y Fund Strategy Performance
2.2% - Consumer Staples Al Mal UAE Equity Fund Benchmark
40
37
Geographic Allocation 34
31
28
50.8% - Abu Dhabi
25
22
46.6% - Dubai
19
16
2.6% - Cash
13
10
Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Feb-22 Feb-23 Feb-24 Feb-25 Feb-26
----- End of picture text -----

Disclaimer

None ofthe information andopinions containedherein is intendedto form the basis for any investment or trading decision, andno specific recommendations are intended. The products andtransactions describedherein are not suitable for every investor. Such products and transactions are only suitable for sophisticated andknowledgeableprofessionalusers offinancialinstruments andare structured and customized to the needs andobjectives ofeach investor. The information andopinions contained herein have been preparedfor informational purposes only and do not constitute an offer to sell, or solicitation of an offer to purchase, any security, any commodity futures contractor commodity-related product, any derivative product, or any trading strategy or service described herein. Neither Al MalCapital PSC nor any ofits affiliates, directors, authorized managers and/or employees accepts liability for any loss arising from the use ofor makes any representation as to the accuracy or completeness ofthe terms andconditions ofproducts and transactions described herein. Finalized terms and conditions are subject to further discussion and negotiation and will be determined in part on the basis of pricing and valuation models, data, and assumptions that are proprietary to AlMal Capital and its affiliates. No assurance can begiven that a product or transaction can, in fact, be executed on any representative terms indicated herein.