Emirates Islamic Bank intends to launch a new property fund with Belgravia Asset Management (“Belgravia”), a Jersey based fund management group. The Shariah compliant Fund will be launched with $65 million of proprietary capital and will invest in a wide range of properties with a primary focus on the United Arab Emirates (“UAE”).
The Fund is Jersey registered, with monthly subscriptions and redemptions. In addition to capital growth, it will target an income distribution of 7% p.a., which will be paid on a bi-annual basis. The Fund is open to institutional and individual investors with an initial minimum investment amount of US$ 100,000.
Mr. Ebrahim Fayez Al Shamsi, CEO of Emirates Islamic Bank commented: “Emirates Islamic Bank is proud to offer a sophisticated investment opportunity to UAE and international investors. Not only is this the first local property fund, but also the first Shariah compliant property fund to be launched in the UAE. We are proud to be associated with Belgravia Asset Management which has been a fund manager to various successful UK property funds and other international funds. Property is a widely accepted asset class and powerful portfolio diversification tool. By offering UAE property in the form of a fund, creates an additional exciting investment opportunity for our valued clients.”
Peter Simmons, Global Head of Sales and Marketing, Belgravia Asset Management, said: “This joint venture brings together two organisations with complementary skills and experience. Belgravia has firmly established itself as a leading property investment manager with a proven track record of providing investors with consistent and attractive returns. Emirates Bank and Emirates Islamic Bank are leading banking organisations in the UAE with an unrivalled local market knowledge and distribution capabilities. As this is the first professionally managed offshore property fund to be marketed in the region we expect to have strong demand from investors. I am delighted that we are working together with Emirates Bank and we are very excited about the potential for the Fund.”
Mr. Ebrahim Fayez Al Shamsi, CEO of Emirates Islamic Bank added: “The UAE has been one of the market leaders for property development and innovation in the region. The success of residential and commercial developments over the last three years has proved the increasing popularity of this asset class amongst investors in the Middle East. With the continued growth of the UAE and the region, both property rental income and capital growth should continue to flourish. By setting up this fund, we offer the retail investor an opportunity to invest in this growing asset class and be part of the spectacular development of the UAE.”
The Fund will be governed by the strong regulatory environment of Jersey and independent auditors, legal advisors, valuers and administrators have been appointed. Whilst the Fund will primarily focus on both commercial and residential property investment, it will also maintain some liquid asset investments.
About Emirates Islamic Bank
Emirates Islamic Bank is a licensed Islamic Bank established in October 2004 with a mission to provide consumers in the UAE with effective and innovative Sharia-compliant financial solutions and total peace of mind. Emirates Islamic Bank is headquartered in Dubai with 10 branches offering retail, corporate and investment services throughout the UAE. The bank is driven by a vision to be the leading Islamic bank in the country and to consistently develop new solutions to meet the ever-evolving needs of its customers.
