Emirates Islamic Bank launches the Danat RIA Fund

Emirates Islamic Bank, one of the leading Islamic financial institutions in the region, has announced the launch of the Danat India RIA Fund. The new fund aims to capitalize on the booming real estate market in India, which is currently one of the fastest growing economies in the world and a prime market for real estate investment.
The maximum offer of the Mudarabah Fund is AED 210 million with the Bank co-investing its own proprietary money in the fund to the tune of AED 60 million.

The bank will acquire 77.78% equity in Danat RIA Company, which has been established with the principle purpose of indirectly acquiring a parcel of land (around 500 acres) to develop an integrated middle income township within the boundaries of New Delhi.

Once developed, the target market of the township will be New Delhi’s growing middle income population who are seeking more affordable housing

opportunities

The fund is open to all through EIB exclusive Priority Banking channel “Ethmar” and investments can be made in multiples of AED 100,000. Mr. Ibrahim Fayez Al Shamsi, CEO of Emirates Islamic Bank, commented on the fund by saying. “India, with its ever-improving professional profile and employment ratio, has a fast growing middle class with a noticeable amount of disposable income.

The housing and real estate sector is experiencing an unprecedented boom, and the Danat RIA India fund aims to make the most of this. We would like to offer this exclusive opportunity to our customers through a well thought out investment product” said Mr.

Al Shamsi. The fund is closed ended, with an expected investment term of 36 months from the date of commencement, and the bank will have the right to extend it by an additional 12 months.

The profits on the investment will be generated through the sale of undeveloped land parcels as well as developed housing units on the project site over the course of the investment term.

The Fund carries a subscription fee of 1.5% of the investment amount, with a performance fee of 25% on any excess return over the expected gross profit.

The fund is expected to generate handsome returns for the applicants and it is aligned to the Bank’s objectives of offering a wide range of products and services for its client base.
About Emirates Islamic Bank:

Emirates Islamic Bank opened its doors in October 2004 with a mission to provide consumers in the UAE with effective and innovative Shari’a-compliant financial solutions.

The Bank offers a range of Shari'a compliant products and services conforming to the highest standards of Islamic finance and all its activities are overseen by a Shari'a board comprising several prestigious scholars of Islamic law.

On the retail side, the bank has an array of products, such as a full range of credit cards including Visa Infinite Card; Manzili Home Finance, Intaleq Car Finance, and many other products. The bank has also launched Al Reem Ladies Banking, a specialized banking service designed to cater to the banking and financial needs of women in the region.

The bank also offers Ethmar Priority banking to suit the demands of the high-net-worth clients.

Emirates Islamic Bank is very active on the Corporate Banking level, seeking exceptional investment opportunities in the local as well as the regional market. Within almost three years of its inception Emirates Islamic Bank has managed to position itself as one of leading financial players in the UAE’s banking sector.

The bank’s rapid growth and success is mainly due to its continued successful launch of Shari’a compliant products, services and other key business initiatives.
EIB is headquartered in Dubai and employs more than 800 staff.