Al Basha'er GCC equity fund attracts US$540 million from regional investors

The open-ended Al Basha'er GCC Equity Fund, which originally sought to raise US$400 million, was jointly launched by GFH, Kuwait Finance and Investment Company (KFIC) and Qatar Islamic Bank (QIB) on October 9, 2005 to offer investors a significant opportunity to participate in the growth of the region's capital markets. The fund's mandate ensures investments in Shari'a-compliant companies only.

Commenting on the huge response to the fund, Mr Alaa Eraiqat, Executive Vice President and Head of Consumer Banking Group, ADCB, said: "The unprecedented response of investors to the Al Basha'er GCC Equity Fund is a clear indication of the increasing appetite for cutting-edge investment products in the regional market. It is also a vindication of our strategy to provide investment opportunities that are in line with the unprecedented economic growth of the region."

The fund closed on November 24, 2005 and will re-open after a 2-month closure period. The Fund will offer monthly subscriptions and redemptions, based on Net Asset Value (NAV), and will be under the supervision of the Bahrain Monetary Agency (BMA).

"We have already identified a few investment opportunities across the region and are in the process of investing up to US$57 million in various Shari'a-compliant regional companies. We will be monitoring the regional market further to identify performing companies in line with our mandate to invest in both listed and unlisted companies which follow Islamic norms," Mr. Eraiqat said.

The exclusive placement partners of the Fund, which is jointly managed by GFH, QIB and KFIC, are Abu Dhabi Commercial Bank, Gulf Bank and Gulf Finance House Commercial Bank for the markets of the United Arab Emirates, Kuwait and Bahrain, respectively.

Commenting on the enthusiastic response to the Fund as a reflection of investors' confidence in the future of the GCC stock markets, Peter Panayiotou, Chief Operating Officer, GFH said:

"The purpose of the Fund is to benefit from the potential the region's equity markets offer. The GCC equity markets are very strong. The Fund offers an ideal investment instrument for regional investors to take advantage of this growth."

"The financial institutions behind the Al Basha'er GCC Equity Fund have solid expertise in making investments in various economic sectors across the GCC and investors will benefit from this track record.," he added.

The minimum initial subscription in the Fund is pegged at US$10,000, followed by subsequent investments in tranches of US$ 1,000.