Emirates NBD launches Sukuk fund

ZAWYA:Emirates NBD has launched a fund to take advantage of the high yields currently available in Islamic bonds following the steep price declines in Q4 2008 caused by the wider turmoil in global financial markets.

The Emirates Sukuk Fund No 1. Limited (the "Fund"), which will be managed by Emirates Investment Services Ltd ("EIS") will buy Islamic bonds, or sukuk, issued by companies and governments based mainly in the Middle East and North Africa. The Shari'a-compliant Fund targets annualized returns of c.12% over the next four years.

"Now is a great opportunity to buy sukuk at cheap prices," said Mr. Jamal Bin Ghalaita, General Manager of Consumer Banking and Wealth Management at Emirates NBD, "We believe much of last year's panic-selling in this market was unjustified, but it means these fundamentally strong assets are available at extremely attractive valuations...Continue Reading