Mashreq Capital Plans $100m Islamic Equity Fund
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Mashreq Capital Plans $100m Islamic Equity Fund

Mashreq Capital Plans $100m Islamic Equity Fund

The investment unit of the Dubai lender plans to raise between $75 million and $100 million for the fund.

Gulf Business

Dubai-based Mashreq Capital plans to set up an Islamic equity fund of up to $100 million 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 $75 million and $100 million for the fund, and will seed it with a $20 million 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 $800 million of assets under management.


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