Emirates NBD launches Sukuk fund

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About Emirates Investment Services Ltd
Emirates Investment Services Limited is part of Emirates NBD, the largest bank by assets in the Middle East and North Africa. Emirates Investment Services is based in the Dubai International Financial Centre, and regulated by the Dubai Financial Services Authority.

About the Sukuk market
Sukuk are a segment of the fast growing Islamic finance market. The sum of Islamic assets has been growing at over 20 percent a year and reached $900bn in 2007 and is set to hit $2 trillion by 2010. The use of sukuk has become increasingly popular in the last few years, both as a means of raising government finance through sovereign issues, and as a way for companies to obtain funding through the offer of corporate sukuk. The first issues date back to 2000 and the growth and evolution of the sukuk market, particularly in the Gulf region, is among the most significant developments in Islamic finance over recent years. Sukuk issuance more than doubled in 2007 to exceed $60bn and although 2008 has seen a slow down in issuance due to the global financial crisis, sukuk issuance is expected to exceed $100bn in 2009. The MENA region has been a strong supporter of the sukuk market and has contributed 33% of global sukuk issues.
Although the Sukuk market is still underdeveloped, there are a number of high-quality issues available to investors. And although the market has been affected by the global economic crisis, this creates an opportunity for investors to purchase these high-quality issues at a discount.

About Emirates Sukuk Fund No 1. Limited
The Fund is a 48 month closed-ended Shari'a compliant fund registered in Jersey. The Fund will invest in a portfolio of sukuk instruments issued by companies predominantly in the MENA region. The primary investment objective of the Fund is to achieve maximum total return over the tenure of the Fund.

The Fund will also make income distributions on a semi-annual basis. The distributions will be derived from income generated by the underlying sukuk and maturity proceeds received from the investments made.

Diversification will be achieved through investing in a basket of sukuk with various maturities, from a variety of issuers. Investments will be made in a Shari'a compliant manner and the Fund shall invest within the guidelines and restrictions as agreed and approved by Shari'a Supervisory Board of Emirates Investment Services Limited.

For further details and press enquiries, please contact 04-3700022