Al Rajhi Capital is expanding its exchange-traded fund lineup with the launch of the Al Rajhi MSCI Saudi Equity Dividend ETF on the Saudi Exchange (Tadawul), following an initial offering that raised SAR 50 million ($13.3 million). The new ETF provides investors with access to Shariah-compliant Saudi equities, with a focus on companies offering attractive dividend yields.
The fund’s initial offering closed on November 4, 2026, and its units are scheduled to begin trading on Tadawul’s Main Market on November 9, under ticker 9414 and ISIN SA16KG54J346. The listing follows approval from Saudi Arabia’s Capital Market Authority (CMA) in July 2026. The ETF is another addition to Saudi Arabia’s growing market for passive investment products, as asset managers expand their offerings beyond broad-market equity exposure into more specialized strategies. The ETF marks the GCC's 46 ETF following the cross listings of the two PLUS ETFs Korea Defense and Plus ETF Advanced Manufacturing on the Abu Dhabi Securities Exchange (ADX) last week.
A New Way to Access Saudi Dividend-Paying Companies
Unlike traditional Saudi equity ETFs that seek broad exposure to the local stock market, the new Al Rajhi fund emphasizes dividend-paying companies while maintaining compliance with its approved Shariah investment standards.
The strategy aims to give investors diversified exposure to Saudi-listed companies with comparatively high dividend yields, offering an alternative to selecting individual dividend stocks. Dividend-oriented strategies may appeal to long-term investors, although elevated yield does not necessarily imply sustainable future payouts.
The launch also broadens Al Rajhi Capital’s product lineup. In August 2026, the company introduced the Al Rajhi MSCI Saudi Equity ETF (ticker 9413), which tracks a broader Shariah-compliant Saudi equity benchmark. The new dividend ETF adds a more focused strategy alongside that existing product.
Key Fund Characteristics
Characteristic | Details |
Fund name | Al Rajhi MSCI Saudi Equity Dividend ETF |
Fund manager | Al Rajhi Capital |
Exchange | Saudi Exchange (Tadawul) |
Ticker | 9414 |
ISIN | SA16KG54J346 |
Scheduled listing | November 9, 2026 |
IPO proceeds | SAR 50 million ($13.3 million) |
Asset class | Saudi equities |
Investment focus | High-dividend-yield Saudi companies |
Shariah compliance | Yes, subject to fund standards |
Management approach | Index-tracking |
Annual management fee | Not independently verified |
Dividend distribution frequency | Not independently verified |
Exact benchmark designation | Pending official fund-document confirmation |
Examining the Underlying Dividend Strategy
While the new ETF’s full portfolio holdings were not independently available at the time of review, MSCI publishes an index closely matching the fund’s stated investment objectives: the MSCI Saudi Arabia Domestic IMI Islamic High Dividend Yield Index. It selects Saudi large-, mid- and small-cap companies for relatively high and sustainable dividend yields under Shariah investment principles.
As of October 30, 2026, this comparison index contained 14 constituents, had a reported dividend yield of 5.60%, a trailing P/E of 13.10×, a forward P/E of 11.94× and a price-to-book ratio of 2.33×. Its index market capitalization was approximately $52.53 billion.
Important: These figures describe the independently identified MSCI index, not verified characteristics of Al Rajhi ETF 9414. The ETF’s exact benchmark must be confirmed before these characteristics are attributed to the fund.
Largest Constituents in MSCI’s Saudi Islamic Dividend Index
MSCI’s October 30 index data indicates substantial allocations to Saudi Aramco and Bank Albilad, followed by businesses in logistics, retail, healthcare and construction materials.
Source: MSCI, October 30, 2026. Chart reflects indicative comparison-index weights, NOT confirmed ETF 9414 portfolio holdings.
The two largest constituents account for approximately 61.8% of the comparison index. This illustrates how dividend-oriented indices can retain sizable concentration risk despite investing in multiple companies.
What Does This Mean for Investors?
The launch of Al Rajhi Capital’s dividend ETF reflects increasing specialization in Saudi Arabia’s ETF market. For investors, the product offers a potentially convenient route to Saudi dividend-oriented equities within a Shariah-compliant framework, without having to build and maintain an individual stock portfolio.
Investors should distinguish among the dividend yield of the underlying index, the distributions actually paid by the ETF and the ETF’s total investment return. These can differ materially. Actual fund payouts depend on securities held, cash income received, fees and the distribution policy; index yield is not a guaranteed fund payout.
The new fund expands Tadawul’s lineup beyond capitalization-weighted equity exposures toward more targeted investment objectives. Its appeal will ultimately depend on its portfolio construction, fees, trading liquidity and distribution policy.
Editorial Verification Note
The reported offering proceeds, scheduled launch date, ticker and ISIN were included in market announcements. The ETF’s precise benchmark, actual holdings, annual fee and cash-distribution frequency require verification in official fund documentation. The MSCI index analysis and chart above are illustrative comparisons and must not be presented as confirmed fund holdings.
Sources
Argaam — Al Rajhi Capital raises SAR 50 million: https://www.argaam.com/en/article/articledetail/id/1951399
MSCI — Saudi Arabia Domestic IMI Islamic High Dividend Yield Index: https://www.msci.com/indexes/index/717818/msci-saudi-arabia-domestic-imi-islamic-high-dividend-yield-index
Al Rajhi Capital — official manager website: https://alrajhi-capital.sa/
