Dubai investment banking and asset management firm Shuaa Capital has set up three Sharia-compliant funds in the Abu Dhabi Global Market as it continues to diversify its product portfolio and grow its fee income business.
The new open-ended funds bring assets under management on the company's Sharia-compliant platform to more than $200 million, Shuaa said on Tuesday.
“We continue to see flourishing investor demand for Sharia-compliant investments and our uniquely structured managed funds … provide investors with more opportunities to diversify their investments across prime geographies and regions,” said Ajit Joshi, managing director and head of public and private markets at Shuaa Capital.
The funds — the Shuaa Global Sukuk Fund, the Shuaa Global Equity Fund and the Shuaa North America Equity Fund — were launched through the company’s wholly owned subsidiary, Shuaa GMC, which is regulated by the ADGM Financial Services Regulatory Authority.
They will focus on institutional high-net-worth individuals and corporate investors by offering them additional investment opportunities to diversify their investments across regions and asset classes.
The funds are under the umbrella of Shuaa's Incorporated Cell Company (ICC) fund structure, domiciled within the ADGM and managed by Shuaa GMC.
The Shuaa Global Sukuk Fund will seek to maximise total return over the medium to long term through a combination of capital growth and income.
It will invest in sukuk and other Sharia-compliant debt instruments, the company said.
The Shuaa Global Equity Fund will primarily invest in global Sharia-compliant equities while the Shuaa North America Equity Fund will focus on North American Sharia-compliant equities.
Shuaa GMC also plans to launch three additional funds under the ICC umbrella in the first quarter of 2023 with a focus on Saudi Arabia and the GCC.
The move will bring its assets under management on this product platform to more than $400 million.
Shuaa oversees $14 billion in assets and the company is “well-positioned to benefit from the GCC's positive economic outlook”, it said in November.
Higher oil prices this year have led to GCC countries running budget surpluses. This has strengthened sovereign balance sheets and resulted in a surplus of capital available for investment opportunities.
