Dubai's Mashreq plans $100m Islamic equity fund

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Dubai-based Mashreq Capital plans to set up an Islamic equity fund of up to $100m in the third quarter of this year to invest in stocks across the Gulf region, given lower returns in the bond market, the company's chief executive said.

"We think there is demand in high-dividend sharia equities," particularly with interest rates currently very low, Abdul Kadir Hussain told Reuters at Zawya's MENA Asset Management conference in Dubai on Wednesday.

"Equities have very attractive yields in this region," he added.

The investment unit of Mashreq bank hopes to raise between $75m and $100m for the fund, and will seed it with a $20m investment from the bank.

Hussain said the fund would be Mashreq Capital's fourth as it now manages two fixed income funds and one conventional equity fund, with a total of $800m of assets under management.

Related:
Companies

Market Performance

Mashreq
120.0
0.0 0.0 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Shuttered banks, ATM queues and $77 daily limits: Greece plunges into crisis

Shuttered banks, ATM queues and $77 daily limits: Greece plunges into crisis

Breakdown in talks between Athens and its creditors plunged the...

Malaysia fund's $4.5bn rescue may weigh on Abu Dhabi's IPIC

Malaysia fund's $4.5bn rescue may weigh on Abu Dhabi's IPIC

International Petroleum Investment Co came to the aid of Malaysia...

Debt market beckons as Saudi bourse opens to foreigners

Debt market beckons as Saudi bourse opens to foreigners

Corporate bond issuance in the kingdom is the most active in...

Most Discussed