IslamicFinance.de

Emirates NBD has launched a fund to take advantage of the high yields currently available in Sukuk following the steep price declines in Q4 2008 caused by the wider turmoil in global financial markets. The Shari’a-compliant Fund targets annualized returns of c.12% over the next four years.

Jamal Bin Ghalaita, General Manager of Consumer Banking and Wealth Management at Emirates NBD, sees Sukuk as undervalued after panic selling last year.

Minimum investment of USD 25,000 for individual investors and USD 1,000,000 for institutional investors. The secondary sukuk market is difficult to access but, by investing through the Fund, investors benefit from scale, diversification, and the skills of expert fund managers. Should the Fund meet certain return targets, the Fund will be called and gains will be locked in for investors.