Islamic development fund soon to be launched
The final touches are being put to a $1.5 billion Islamic fund, which will be managed in Bahrain, reported the Gulf Daily Tribune. Sponsored by the Islamic Development Banks (IDB), The 10-year venture capital fund is designed to support the private sector in its member states.
It will be managed by the Washington-based Emerging Markets Partnership (EMP), a world leader in managing infrastructure funds, but monitored by the IDB. For this purpose, EMP has established a subsidiary in Bahrain to manage the IDB Infrastructure Fund.
According to Dost Mohammed Qureshi, and IDB adviser, with a total of $850 million already raised, there are already sufficient funds now to make the first closing of the equity portion. As the main sponsor, IDB pledged $250 million, the Geneva-based Dar Al Maal Al Islami (DMI) Group pledged $200 million, and there has been a $300 million commitment from Brunei and $100 million from Saudi Arabia.
Ultimately, the fund will comprise of an equity portion worth $1 billion and a mezzanine portion of $500 million. It will finance transactions such as murabaha and leasing agreements.
According to the Gulf Daily Tribune, the first closing of the mezzanine portion has already been completed with commitments of $100 million each from the IDB and the DMI Group.
The government of Bahrain discussed the establishment of the fund at its weekly meeting on November 19, and it was brought before the country’s Shura Council the following week. An Amiri decree is needed before it can be formally established. – (Albawaba-MEBG)