In the UAE’s evolving interest-rate landscape, investors across the spectrum—from individuals and high-net-worth individuals (HNWIs) to corporates and institutional allocators—are increasingly reassessing their idle cash management strategies. Following cumulative rate cuts in the US and the UAE, short-term benchmarks have begun to retreat from their recent peaks. Despite this shift, traditional bank deposits—while familiar—often continue to lag behind more dynamic, market-based cash solutions.

Against this backdrop, money market funds have emerged as a highly efficient alternative. These funds offer a strategic combination of capital preservation, daily liquidity, and yields that remain competitive even as policy rates ease. Mada Capital’s Awayd Money Market Fund and Namaa Shariah-Compliant Money Market Fund exemplify this proactive approach, providing professionally managed solutions tailored for everyone from retail savers to sophisticated corporate treasuries.

By positioning themselves between conventional savings accounts and higher-risk assets, these funds combine high-quality, diversified portfolios with same-day liquidity (T+0) and no lock-up periods. This structure ensures investors maintain immediate access to their capital while benefiting from active management and market-linked returns—a critical advantage in a declining-rate cycle.

Awayd: Institutional-Grade Liquidity and Yield

Awayd is an open-ended, AED-denominated public fund regulated by the UAE Securities and Commodities Authority (SCA). The fund strategically invests in high-quality short-term instruments, including treasury bills, government securities, supranational, and investment-grade corporate issuances.

As of December 2025, Awayd maintained:

Weighted Average Credit Rating: A+

Yield to Maturity: 4.68%

Weighted Average Maturity: 119 days

The fund delivered a strong performance of 4.91% for 2025, reaching a cumulative return of 10.89% since its inception in December 2023. Geographically diversified across Saudi Arabia, the UAE, and the US, the portfolio remains heavily concentrated in the 0–90 day maturity bucket. This ensures maximum capital preservation and allows the fund to adapt swiftly as market conditions evolve.

Namaa: Shariah-Compliant Cash Management

Complementing the conventional offering, the Namaa Fund provides a premier Shariah-compliant solution for Islamic investors. Under the supervision of an independent Shariah Board, the fund invests exclusively in approved Islamic instruments, such as Sukuk and Shariah-compliant placements.

As of December 2025, Namaa maintained:

Weighted Average Credit Rating: A-.

Weighted Average Yield to Maturity: 5.02%.

Weighted Average Maturity: 146 days.

By diversifying across regions and short-dated instruments, Namaa offers a credible, income-generating alternative for Islamic retail investors, family offices, and corporates looking to optimize their cash balances.

A Disciplined Framework in a Rate-Cut Cycle

Both funds are governed by a rigorous institutional process that includes internal credit analysis, strict issuer concentration limits, stress testing, and continuous macroeconomic reviews. This disciplined oversight, supported by regular investment committee assessments, prioritizes sovereign and government-linked instruments to mitigate market volatility.

While short-term benchmark rates have moderated—now sitting between 3.5% and 3.75%—Mada Capital’s funds continue to outperform prevailing benchmarks. This is largely due to the strategic composition of existing holdings and the natural "lag" in repricing short-dated instruments. As these assets mature and proceeds are reinvested at current market yields, fund returns will adjust gradually and transparently, offering investors a smoother transition than an abrupt market reset.

A Smarter Approach to Treasury Management

For HNWIs, corporates, and institutions, allocating surplus cash to professionally managed money market funds represents a directional shift toward proactive treasury management. By consistently delivering returns above benchmarks and traditional deposits—without elevating the risk profile—these allocations enhance financial efficiency while preserving full operational agility through same-day settlement.

As interest-rate cycles continue to evolve, investors are encouraged to assess these solutions in line with their specific liquidity needs and risk parameters.

For more information, visit madacapitalfs.com or download the Mada Capital app.

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Website: https://madacapitalfs.com/contact

About Mada Capital

Mada Capital, is a financial services firm regulated by the Securities and Commodities Authority with seven core licenses, based in the UAE. It manages over AED 3 billion in assets and employs more than 35 professionals from 15 nationalities. The firm provides services in investment management, fund establishment and management, private equity, and advisory, having led over 15 IPOs and launched more than 30 investment funds.