Sharjah Islamic Bank introduces precious metals investment opportunity

Sharjah Islamic Bank is anticipating to receive more than $50m worth of subscriptions in the offering.

Sharjah Islamic bank has launched a new fund to take advantage of the growing gold and other precious metals markets. Bank officials expect that the fund titled as "Tharwa Precious Metals Securities Fund" will achieve medium to long term capital appreciation by exploring investment opportunities in gold and other precious metals. This new fund represents an opportunity for UAE Nationals, expatriate residents, and institutions in the UAE to invest in a Shari'ah compliant investment product.

The Tharwa Precious Metals Securities Fund will be invested in the shares of companies that are engaged in the gold and precious metals business. Mr. Saeed M. Al Amiri, Head of Investment Banking Group, said that the fund will be managed by Deutsche Asset Management Limited (Asia), an asset management arm of Deutsche Bank, while the fund will be annually audited by KPMG Chartered Accountants.

Rahma Al Shamsi, AVP of Asset Management and Financial Institutions explained that, "The gold rally between 2001-2007 is the result of weakening currency and an exponential increase in the demand for gold in populated markets like China and India."

He further went on explaining the details of the fund, by stating that the bank anticipates receiving subscriptions worth $50m in the offering. All UAE nationals and expatriate residents of the UAE will be eligible to invest, as well as various institutions which are in the United Arab Emirates. The minimum offer has been set at $3,000 for individuals and $100,000 for institutions.

Mr. Saeed M. Al Amiri revealed the bank's investment plans by saying that the bank has formulated an aggressive strategy aimed at providing growth oriented and secure investment products to customers. He further added that the bank will soon be launching investment products of capital protected in nature and Real Estate related.