Dubai firm launches Iraq Opportunity Fund
The Dubai-based asset management firm Al-Daman Securities has launched a new fund, designed to allow investors to acquire assets in sanctions-hit Iraq in the hope that the nation’s future reconstruction will generate a hefty windfall.
The firm plans to identify investment opportunities in Iraq, in retail, commercial and infrastructure projects, congruent with current international trade restrictions. These projects are expected to reap attractive dividends in a post-war setting, while providing investors with the opportunity to partake in the rebuilding of Iraq.
A discretionary private equity initiative, the Daman Iraq Opportunity Fund is a close-ended scheme, registered in British Virgin Islands. It was launched with an authorized share capital of 183.5 million Emirati dirhams ($49.9 million). The par value per share will be $100 and the minimum subscription has been fixed at $100,000. With a life of five years—extendable for another five years—the fund size has been fixed at $50 million.
It is possible that the fund will not initiate full-fledged investment in Iraq in the coming 18 months, stated Daman Director Shihab Gergash, due to political and other factors. “If Daman decides not to go ahead with investments there, in view of any unfavorable situations, the investments will be returned to the respective investors along with bank interest rate,” he added.
Daman has previously launched the Daman UAE Value Fund, a closed-ended, offshore mutual fund focused on the United Arab Emirates (UAE) stock market. It was launched on July 1, 2001 and has since achieved growth of 33.41 percent and has distributed an uninterrupted quarterly dividend to its investors, according to a company press release.
The new fund falls in line with Daman's regional investment strategy. Daman Asset Management is a joint partnership by a group of UAE investors providing financial services in the region. — (menareport.com)
© 2003 Mena Report (www.menareport.com)