The region’s asset management industry has grown by 11 percent, from $1.1 trillion of assets under management (AUM) in 2019 to $1.2trn in 2020, according to a recent Boston Consulting Group (BCG) report.
As the industry continues to witness a strong growth trajectory and diversification, Mustafa Kheriba saw potential in the market for his newest venture, Arithma Capital.
The new asset management firm, with operations in UAE and Saudi Arabia, helps create opportunities for investors navigating through different market cycles.
“The robust markets have created great opportunities for local and international firms to invest in, and the confidence level is at an all-time high,” Kheriba told Arabian Business.
Listed among the top 50 MENA fund managers in 2015 and 2016 by MENA FM, Kheriba is the ex-deputy CEO and group head of asset and wealth management at Shuaa Capital. He was instrumental in developing Abu Dhabi Financial Group from a small boutique firm in 2011 to a $14 billion AUM giant based in Abu Dhabi, post-merger with Shuaa Capital.
“The UAE has become competitive regionally and a target for capital deployment, steering away from the historical notion of being an exporter of capital.
“The region in its entirety, I believe, is set for an economic spurt and Arithma Capital will strive to be a significant force in helping drive this prosperity forward,” he added.
According to Kheriba, the vision for Arithma Capital is simple, “become a leading asset manager with an alternative approach”.
The asset management firm aims to add value with active portfolio management and help investors reach their financial goals.
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Arithma Capital aims to add value with active portfolio management and help investors reach their financial goals.
“I don’t seek to re-invent the wheel, nor will I imitate or replicate any previous exposures; I will simply do what I used to do in an even better way,” he said.
Kheriba is relying on his exposure to the US, Canadian, European, and regional markets to determine what works and what doesn’t in the UAE and Saudi markets.
“Arithma will focus on building generational wealth for our partners, my team and our investors, while achieving the returns that our clients expect,” he added.
Central to Arithma’s success is its people and their ambition, believed Kheriba, who stated that: “The team working in a cohesive manner, with a focus on their goals, is what will drive our success.”
Arithma is currently focused on three key objectives, in which it has already secured a steady pipeline of deals for, the CEO and managing director shared.
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UAE-based Arithma Capital helps create opportunities for investors navigating through different market cycles.
This includes expanding into the European and MENA region’s private equity markets; investing in disruptive technologies that are financially lucrative, environmentally sound, and ESG-compliant; and developing its alternative investments platform that will offer clients an array of exclusive opportunities that will be key to their portfolio diversification.
“The most important element is that we will do all this under a Sharia-compliant umbrella,” said Kheriba.
While conventional asset management has seen impressive growth over the last few decades, Shariah-compliant investing is yet to really take off, with its full potential remaining untapped in the region.
“We believe that Sharia-compliant asset managers achieve better returns and attract a far greater pool of investors than the traditional platforms,” said Kheriba.
Looking ahead, Arithma is determined to grow its team and achieve an ambitious AED5bn ($1.3bn) in AUM in the next five years.
“I believe that once we are fully licensed and regulated under ADGM, we will be well on our way to achieving this goal. If all goes as planned, we will make great headway on our AUM by the end of 2021,” said Kheriba.
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