UAE bank launches its first Islamic fund

May 19th, 2008 - 11:07 am ICT by admin  

Abu Dhabi, May 19 (IANS) The Union National Bank (UNB), the best performing bank of the United Arab Emirates (UAE), has launched its first Islamic fund that will focus on Islamic equities and other Sharia-compliant investment instruments, WAM news agency reported. The Al Samaha Islamic Fund aims at investing in a balanced portfolio targeted at capital growth both in the short and long term. The fund is an open-ended fund with weekly liquidity.

The minimum subscription to the fund is 10,000 UAE dirham and investment in units is open to all individuals without restrictions.

Galal Khadr, head of private banking and wealth management, UNB, said Sunday: “The idea of the fund emerged from the high liquidity in the local market and the low interest rates, in addition to the promising quarter results of the listed companies which led to the substantial increase in the stock market deals. All reflect the return of trust to the local market.”

The fund has the approval of the UAE’s central bank.

“The region continues to attract new funds and the UAE in particular has seen continuous improvement in this regard,” said Khadr, adding that on the macro-economic level, the region is being driven by a continuous surge in oil prices with the real estate and banking sector leading the economy.

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