The fund will invest in the listed equities, growth and dividend stocks of companies that meet the values of shariah law.
The bank said the potential for growth in the Middle East and North Africa region will offer significant opportunities for investors.
The open ended fund has been operating under Mashreq Al Islami, the Islamic banking division of Mashreq, as a conventional MENA fund domiciled in Dublin since 2008, but has only recently become shariah compliant.
The investment objective of the portfolio is to seek long term capital appreciation, and since its launch it has returned 88% against the S+P Pan Arab Index benchmark return of -19%.
The minimum subscription fee for the fund is $1000 and it has a management fee of 1.5%. It will continue to be regulated by the Central Bank of Ireland following the conversion and will still be listed on the Irish Stock Exchange.
Abdul Kadir Hussain, chief executive at Mashreq, said: “Mashreq is confident about the exceptional growth and potential of the MENA region and we are geared up towards capitalising on the economic growth.”
Reda Gomma, Mashreq Fund Manager, said: “Our investment approach is bottom-up, focusing on the companies with solid and sustainable profitability.
“Given the spending spree by MENA governments to upgrade their infrastructure, corporate earnings are poised to grow substantially over the medium to long term.
“Al Islami Arab Tigers is a well regulated fund and is a good opportunity for investors to benefit from growing economies in the Middle East.”
Founded in 1967, Mashreq is one of the UAE’s leading financial institutions. Its products and services are present in Egypt, Qatar, Kuwait and Bahrain, and it has 12 overseas offices in nine countries, including Europe, US, Asia and Africa. It has won numerous awards in recent years including Best Regional Retail Bank by The Banker ME Industry Awards 2012.
Click here to read an interview with chief executive Abdul Kadir Hussain.
