Investment Philosophy & Policy

Managing social security assets based on economic indicators and strategic directions

Overview

The investment philosophy of the Authority is based on managing social security assets relying on economic indicators, strategic directions, and the general investment policy of the Authority, which is approved by the Board of Commissioners of the Investment Authority and supervised by the General Commissioner.

General Supervision

Board of Commissioners + General Commissioner

Foundation

Economic Indicators + Strategic Directions

Investment Philosophy Goals

Achieve Profitable Returns

Achieve meaningful returns on investment within acceptable risk levels

Preserve Value

Preserve and grow the real value of social security fund assets

Provide Liquidity

Provide liquidity to finance promising investment opportunities and any future obligations

Best Practices

Apply best practices in pension fund management

Investment Policy Pillars

The six foundations on which our investment policy is based

Liquidity

The Investment Authority manages investments with diverse liquidity levels and different maturity dates to avoid concentration in the maturity dates of multiple investments.

Goal: Ensure the provision of necessary cash flows to finance the general obligations of social security

Diversification & Distribution

Assets are invested in diverse investment instruments:

Money Market Instruments
Stocks and Loans
Real Estate and Tourism Investment
Service Investment

Goal: Mitigate investment risks and preserve the real value of assets

Security

Following best procedures and foundations in executing investment operations and establishing adequate regulatory controls to ensure the safety and security of investments.

Principle: Separation of functions and application of highest supervision standards

Ethical Standards

Not investing in locally and internationally prohibited areas and investments that conflict with ethical and general standards.

Priority: Consideration of public interest and commitment to ethical values

Return Growth

Growing returns in line with actuarial study requirements to ensure system sustainability.

Standard: Actuarial study and balance between return and risk

Acceptable Risk Level

Determining the risk level according to the investment policy prepared by the Investment Authority and approved by the Board of Commissioners.

Governance: Board of Commissioners approval of investment policy

Risk Management

The Investment Authority works to reduce investment risks through:

Investment Tool Diversification

According to strategic asset allocation to ensure no concentration in a single sector

National Perspective

Investment in major national projects with viable returns that contribute to achieving economic growth