National Bank of Kuwait launches the first Islamic Global Real Estate Securities Fund in the Middle East

NBK Capital’s Chief Executive Officer, Salah Al Fulaij, stated that the launch of the Fund will enable clients to invest in diversified global real estate securities that comply with Islamic Shariah principles.

This offering will continue to boost NBK’s position as the leading financial institution that offers investment solutions in the local and regional markets.

Al Fulaij added that the Fund was established to achieve long term capital growth through Islamic compliant real estate portfolios. The Fund will provide NBK clients with global diversification and monthly liquidity.

Most Wall Street houses list real estate as an integral part of their asset allocation models.

Al Fulaij added that the Fund will provide NBK clients the opportunity to invest in two diversified portfolios, the Class A portfolio whereby the Fund Manager may utilize Shariah compliant leverage up to 30% and the Class B portfolio that will not utilize any leverage.

The two portfolios of the Fund will each invest in a diversified portfolio of real estate securities including real estate investment, development and operating companies, real estate investment trusts, and the securities of companies providing management & investment advisory services to real estate investment, development and operating companies.

The Fund is entirely compliant with the laws of the Islamic Shariah as approved by the independent Shariah board for Islamic funds marketed by NBK in Kuwait comprised of Sheikh Khalid Mathkor Al-Mathkor, Sheikh Essa Zaki Shakra, and Sheikh Abdul Aziz Khalifa Al-Qassar, stated Al Fulaij.

The Fund is denominated in US Dollars with a minimum initial subscription of $250,000 with multiples of $10,000 for Class A and US$25,000 with multiples of $1,000 for Class B. The Fund is open-ended with monthly subscriptions and redemptions.