Dubai Islamic Bank Launches Investment Funds
Dubai Islamic Bank (DIB) plans to establish two investment funds, one dealing with real estate rentals, and the other with leasing industrial machinery, said the bank’s chairman, Mohammed Khalfan bin Kharbash, on Sunday.
The first fund, the Al Soor Fund for Real Estate Rentals, also involves the Kuwait Finance House and the CitiCorp Group.
Kharbash, who is also minister of state for financial and industrial affairs, told the Gulf News that assets would be $106 million, with DIB having a 23.6 percent, or $25 million stake, while Citicorp would have 15 percent ($16 million), with the remainder held by the Kuwait Finance House, he added.
He said that all parties could offer their shares to investors, and that the fund was expected to offer a yield of 7-9 percent.
The founders hope to tap into the growth of the US realty market, which was put at $280 billion last year.
Some 80 percent of American companies run such operations, making this the biggest such market in the world, he added -Albawaba.com