Al-Muthana Investment announces a fund for investment in GCC Islamic Banks shares

The fund aims to provide attractive investment opportunities in GCC Islamic banking sector shares. Minimum subscription is 1000 units with a nominal value KD1 per unit while projected returns range between 15%-20% per annum.

Mr. Abdul Aziz Naser Al-Marzouk, General Manager - Muthana Investment said that he will issue a maximum of 47,500 units for subscription, amounting to KD47,500. The fund applies a parallel investment policy that aims to realize appreciated returns on investment.

Studies conducted on the GCC Islamic Banks revealed that GCC Islamic banks capital base exceed $30bn. The region recently witnessed the remarkable emerge of Islamic banks at various levels whether banks converting from conventional banks to Islamic banks or those opening Sharia compliant branches or incorporation of new Sharia compliant banks.

Growth ratio of Islamic banks market share is expected to reach 23% by 2010 compared to 8% for traditional banks. GCC listed Islamic banks represent more than 30% of total banks and still increasing. Islamic banks are witnessing remarkable growth in business and tremendous demand on its products and services.

Mr. Al Marzaouk added, "Muthana Investment Company handles the management and investment activities of the 10 years old fund through its highly qualified and experienced staff to realize rewarding and increasing profit. Subscription in the fund units is open for Kuwaiti citizens, GCC citizens, Arab citizens, resident and non-resident expatiates, Kuwaiti, Gulf and foreign companies inside and outside Kuwait. The fund conducts its activities and business in a Sharia compliant manner through its Sharia board. The fund incorporation comes to reinforce the company's GCC strategy and avail more investment opportunities available in the GCC stable and low risk money markets."

He emphasized that the studies conducted by Muthana Investment Company reveal that Islamic Banks Sector is moving with vast steps in the GCC region. Islamic financial institutions increased from 176 institutions in 1997 to more than 350 financial institutions in 2005. Several targeted banks recorded unexpected growth in their returns.