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Tue 20 Oct 2009 08:02 AM

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$300m fund launched to invest in MENA hospitality

Abu Dhabi Investment House says fund will target tourism, airlines, food and leisure.

Abu Dhabi Investment House (ADIH) has announced the launch of a $300m Hospitality Development Fund (HDF), which will mainly invest in projects within the GCC, Middle East, North Africa and Asia.

Rashad Y Janahi, managing director, ADIH said the fund would target sectors such as airlines, tourism, food services and leisure.

"HDF will cater to investors who are looking to diversify their investment portfolio by adding Sharia'a-compliant hospitality-related products to their current basket of investments," said Janahi in comments published by news agency WAM.

The fund will also include investments in new development projects in addition to existing hospitality and entertainment companies that have potential for growth, he added.

He said the United Nations World Tourism Organisation has predicted that countries in the MENA region have seen some of the fastest growth in the global tourism industry in recent years.

The minimum projected rate of return for the fund is 20 percent, ADIH added.

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