Islamic banking institution Kuwait Finance House (KFH) announced it has signed a deal with
Citibank to set up a $106 million real estate investment portfolio. KFH said the portfolio would invest in the United States' real estate market under leasing terms that meet the group’s Islamic banking principles.
The bank operates according to Islamic banking rules that ban interest and calls for profit sharing with depositors. KFH said in a statement that it will contribute $25 million to the portfolio, Citibank will put up $16 million while the rest will come from institutional and individual investors. Citibank will act as portfolio advisor and asset manager in the US while KFH will operate as marketing manager in Kuwait and other Gulf Arab states where Islamic financial products have been in demand by high net worth investors. KFH reported gross profits of $376.8 million in 2000 while assets stood at around $6.4 billion at the end of September. — ( Lebanon Invest )
© 2001 Mena Report (www.menareport.com)
