What legal structure does KAPITAL uses?
KAPITAL structures Special Purpose Vehicles ("SPV") in Luxembourg, by turning alternative assets such as private company stocks or alternative funds into marketable securities in the form of Investment Notes. Specifically, the vehicles used to structure investments via KAPITAL act as a security issuers under the Luxembourg Securitisation Act 2004 & the Luxembourg Fiduciary Act 2003.
Can non-accredited Retail Investors invest via KAPITAL?
No, generally KAPITAL does not issue investment to Retail Investors. Except on rare occasion where the appropriate adjustment is made and relevant registration, disclaimers and prospectus are prepared, KAPITAL does not provide investment structuring intended to non-professional, non-accredited retail investors.
What is the qualification for Professional Investors in the MENA countries ?
The qualifications for professional investors vary by country in the Middle East. Here are the specific requirements for each country:
Saudi Arabia
In Saudi Arabia, high net worth individuals (HNWIs) who wish to be considered as professional investors must meet certain criteria established by the Capital Market Authority (CMA). These qualifications include:
- Net Assets: An individual must have net assets of at least SAR 5 million (approximately USD 1.33 million). This threshold ensures that the individual has substantial financial resources to manage investment risks effectively.
- Investment Experience: The individual should possess relevant experience and knowledge in financial and business matters, which enables them to make informed investment decisions and understand the associated risks.
These criteria are part of the broader regulatory framework aimed at protecting investors while fostering a robust and transparent financial market in line with Saudi Arabia's Vision 2030 (King & Spalding) (KPMG) (KPMG).
For more detailed information, you can refer to the CMA's official guidelines or consult financial advisory services in Saudi Arabia.
United Arab Emirates
In the United Arab Emirates (UAE), high net worth individuals (HNWIs) who wish to be considered professional investors must meet specific criteria set by the Securities and Commodities Authority (SCA). The qualifications include:
- Net Worth: An individual must have at least $1 million in liquid assets. Liquid assets are those that can be easily converted to cash, such as stocks, bonds, and other securities (Investopedia) (GlobalData).
- Investment Experience: The individual should have substantial experience and knowledge in financial and business matters. This is to ensure that they can make informed investment decisions and understand the risks involved.
- Regulatory Compliance: The individual must comply with the local regulations set by the SCA, which may include obtaining specific certifications or endorsements that demonstrate their financial capability and understanding of investment risks (AM Legal Consultancy).
These criteria ensure that only individuals with significant financial resources and expertise are classified as professional investors, providing a safeguard for the financial market in the UAE. For detailed and updated requirements, consulting directly with the Securities and Commodities Authority or financial advisors in the UAE is recommended.
Egypt
In Egypt, the qualifications for a high net worth individual (HNWI) to be considered a professional investor typically include:
- Net Worth: An individual must have at least $1 million in liquid assets. Liquid assets include cash and investments that can be easily converted to cash, such as stocks and bonds (Investopedia) (SoFi).
- Investment Experience: The individual should possess significant experience and knowledge in financial and business matters. This experience enables them to make informed decisions and understand the associated risks.
- Regulatory Compliance: The individual must comply with the local regulatory requirements set by the Egyptian Financial Regulatory Authority (FRA). This may involve specific certifications or endorsements demonstrating their financial capability and understanding of investment risks.
These criteria ensure that only individuals with substantial financial resources and expertise are classified as professional investors, safeguarding the financial market and providing protection for less experienced investors.
For the most precise and detailed requirements, it's advisable to consult directly with the Egyptian Financial Regulatory Authority or financial advisors in Egypt.
Qatar
In Qatar, high net worth individuals (HNWIs) who wish to be considered as professional investors must meet specific criteria. The qualifications for HNWIs typically include:
- Net Worth: The individual must have a significant amount of liquid assets. Generally, this is defined as having at least $1 million in liquid assets, which includes cash and investments that can be easily converted to cash. This threshold ensures that the individual has the financial capability to handle investment risks and opportunities.
- Investment Experience: Similar to other jurisdictions, HNWIs in Qatar are expected to have substantial experience and knowledge in financial and business matters. This experience enables them to make informed decisions and understand the risks associated with their investments.
These criteria are in place to ensure that only individuals with significant financial resources and relevant experience are classified as professional investors, providing a safeguard for the financial system and protecting less experienced investors from high-risk investments. For more detailed and updated information, it's advisable to consult the Qatar Financial Centre (QFC) or other relevant regulatory bodies.
Lebanon
In Lebanon, to be considered a professional investor, a high net worth individual (HNWI) typically must meet specific criteria, although the exact requirements can vary slightly depending on the financial institution or regulatory framework. Generally, the qualifications include:
- Net Worth: An individual should have a net worth of at least $1 million in liquid assets. Liquid assets include cash and assets that can be easily converted to cash, such as stocks and bonds (Corporate Finance Institute) (Finance Strategists).
- Investment Experience: The individual should have substantial experience and knowledge in financial and business matters. This experience enables them to make informed investment decisions and understand the associated risks.
- Regulatory Compliance: The individual must comply with the local regulatory requirements for investment activities. This might include specific certifications or endorsements from relevant financial authorities in Lebanon.
For detailed and specific requirements, consulting with financial advisors or the relevant regulatory bodies in Lebanon is recommended.
Kuwait
In Kuwait, high net worth individuals (HNWIs) who wish to be considered as professional investors must meet specific criteria set by the financial regulatory authorities. Generally, the qualifications include:
- Net Worth: The individual must have a net worth of at least $1 million in liquid assets. Liquid assets are those that can be easily converted to cash, such as stocks and bonds (Adam Fayed) (AGBI).
- Investment Experience: The individual should have substantial experience and knowledge in financial and business matters. This ensures they can make informed investment decisions and understand the risks involved.
- Regulatory Compliance: HNWIs must comply with local regulations set by the Capital Markets Authority (CMA) of Kuwait. This might include specific certifications or endorsements that demonstrate their financial capability and understanding of investment risks.
These criteria help ensure that only individuals with significant financial resources and expertise are classified as professional investors, providing a safeguard for the financial market in Kuwait. For the most accurate and detailed information, it's advisable to consult with financial advisors or directly with the Capital Markets Authority of Kuwait.
Oman
In Oman, to be considered a professional investor, a high net worth individual (HNWI) must meet specific qualifications established by the regulatory authorities. These criteria typically include:
- Net Worth: The individual must have a minimum of $1 million in liquid assets. Liquid assets are those that can easily be converted into cash, such as stocks and bonds (Corporate Finance Institute).
- Investment Experience: The individual should have substantial experience and knowledge in financial and business matters. This ensures they can make informed investment decisions and understand the associated risks (Corporate Finance Institute).
- Regulatory Compliance: The individual must comply with the local regulations set by the Capital Market Authority (CMA) of Oman. This may include specific certifications or endorsements that demonstrate their financial capability and understanding of investment risks.
These criteria ensure that individuals with significant financial resources and expertise are classified as professional investors, providing a safeguard for the financial market in Oman. For detailed and updated requirements, it is advisable to consult directly with the Capital Market Authority or financial advisors in Oman.
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How are currency exchanges handled when investing via KAPITAL ?
Generally, currency exchange are handled by the bank of the subscribing Investor. For each transaction, assets and liabilities denominated in currencies other than the base currency of each investment are translated into the base currency at the exchange rate prevailing at the transaction date.
What document will KAPITAL provide for my annual tax return?
KAPITAL provides an annual statement on the status of each investors portfolio at year end. This statement will include for each investment made:
- The date of investment;
- The amount invested;
- The name of the underlying asset;
- The type of underlying asset;
- The % ownership within each specific SPV;
- Any change in the asset valuation at year end;
How should I report my investments as part of my annual tax return?
KAPITAL cannot provide tax or legal advice. Instead, we provide investors with a standardised annual statement (see above) which investors can share with their own accountant in order to prepare their tax return.
Please note that the taxation of an investment might vary based on the underlying asset you're investing into; therefore it is always recommended to seek independent professional opinion before investing or when deemed necessary.
