CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Dubai Investment Bank Launches Islamic Shipping Fund

Dubai Investment Bank Launches Islamic Shipping Fund

by Phillip Morton, Investors Offshore.com

10 August 2006


Dubai Islamic Bank (DIB) recently announced the launch of the 'Al Islami Shipping Fund', a Shari'ah-compliant investment fund that will invest in selected shipping assets through Musharka joint ventures.

The new fund, announced last month, has a target of US$32 million and will offer profit distribution on a quarterly basis. The Fund has a locked–in 4-year maturity and will provide investors with the opportunity to enter into an investment product that can provide a predictable return derived from pre-determined Charter Hire Rates for the entire period of the term.

The minimum investment amount is US$25,000 and the fund is targeting an estimated profit rate of 8.5% per annum which will be distributed within four weeks from the end of each quarter.

Saeed Al Qattami, Senior Vice President, Head of Wealth Management, DIB, stated: “The Al Islami Shipping Fund adds an innovative new element to our portfolio of investment products and provides our customers with another diversified investment option.

"As a result of the recent market volatility and apprehension of some investors to enter the equity markets, we felt this product will provide an alternative investment solution. This product is for those customers looking to achieve a higher rate of profit relative to short-term deposits and wanting a regular stream of income via quarterly payouts.”

According to Erick Lind, CEO of Tufton Oceanic, the Investment Manager of the Al Islamic Shipping Fund, the Investment Units offer an attractive risk/reward ratio with a high yield. He also believes that the underlying covenants supporting the investments made by the fund are first rate shipping companies in the region.

Moinuddin Malim, Managing Director, Asset Management & Capital Markets, Investment Banking Group, DIB, stated: “The investments in the new fund will be made into modern ships with substantial expected useful lives beyond the end of the investment period. The Guarantors of the vessels are financially strong companies with well established businesses."

The Al Islami Shipping Fund is the latest in a series of investment funds launched by DIB, including Al Islami Capital Protected Note, GCC Equity Fund, Al Islami Saving Scheme, Pan European Real Estate Fund, US Real Estate Fund and two French Real Estate Funds.

A comprehensive report in our Intelligence Report series examining offshore investment, offshore stock exchanges, and hedge funds is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report9.asp

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »