
The Saudi Exchange halted trading in Alkhabeer Growth and Income Fund units effective June 18. The fund is set to delist on June 25, 2026, giving unit holders a year to adjust.
The Saudi Exchange suspended trading in units of the Alkhabeer Growth and Income Traded Fund on June 18, the exchange said. The halt is the first step toward delisting the fund, which is scheduled for June 25, 2026.
The fund, managed by Alkhabeer Capital, invests in a portfolio of growth and income securities. Tadawul rules require a trading suspension before a delisting to allow for final valuation and settlement. Unit holders can sell their positions on the exchange until the suspension date. After that, they must wait for the delisting process to complete and receive proceeds based on the fund's net asset value at liquidation.
The one-year gap between suspension and delisting is unusual. Most fund delistings on Tadawul conclude within weeks or months. The extended timeline may reflect the fund's underlying asset liquidity or a structured wind-down plan. The exchange did not provide further details on the reason for the delay.
For unit holders, the key decision is whether to sell before the suspension or hold through the delisting. Selling on the exchange before June 18 locks in the market price, which may trade at a discount or premium to net asset value. Holding through delisting means receiving the final NAV distribution. Unit holders will have no ability to trade during the interim. The fund's last traded price and NAV were not immediately available.
The delisting removes the fund from Tadawul's list of traded funds. The exchange currently lists over a dozen ETFs and traded funds. The Alkhabeer fund's exit reduces the options for income-focused investors on the Saudi market. No other funds have announced similar plans.
The suspension process under Tadawul rules is designed to protect unit holders. Once trading is halted, the fund manager must calculate the NAV and begin liquidating the portfolio. The one-year timeline suggests a gradual sell-off to avoid market impact. The fund manager will distribute cash to unit holders as assets are sold, with a final distribution after the delisting date.
Unit holders who do not sell before the suspension will become unitholders of a non-traded fund. They will receive periodic cash distributions as the fund sells its holdings. The final payout may occur after June 25, 2026. The exchange requires the fund manager to provide regular updates on the liquidation progress.
The extended timeline means unit holders who hold through delisting will have their capital tied up for over a year. They will not be able to trade the units or access the cash until the liquidation is complete. This may push some investors to sell before the suspension, even at a discount, to free up capital.
The Alkhabeer Growth and Income Traded Fund was one of several traded funds on Tadawul offering exposure to a mix of equities and fixed income. Its delisting follows a trend of consolidation in the Saudi ETF market, where some funds have closed due to low assets or trading volumes. The exchange has not indicated whether other funds face similar actions.
The exchange said it will provide further updates on the delisting process as the date approaches. Unit holders should monitor Tadawul announcements for instructions on how to claim proceeds.
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