Millenium Finance Corp., an investment bank controlled by Dubai Islamic, said last year it would set up seven funds that comply with Islamic principles to invest in mainly unlisted companies.

The first two $1 billion funds, focusing on energy and telecommunications, will each raise $400 million from Gulf Arab investors by April, Izzet Guney, managing partner of the fund’s manager Millennium Private Equity told Reuters on Monday.

Both funds would then invest up to half of the money within three months, he said.

The telecom fund has identified investments in start-up telecom firms or joint ventures in the Middle East or Africa, Guney said, declining to be more specific.

“We’re still deciding on which deals make sense. We should invest $100 to $200 million for each fund in the next three months,” Guney said on the sidelines of a private equity conference.

In November, the manager of the energy fund said it was in talks with companies including Australia’s Anzon Energy AEL.L and Abu Dhabi’s Aabar Petroleum AABAR.AD about investing in Middle East and African oil fields.

The second, $600 million tranche for each fund would draw funds from Asian, European and North American investors, and likely close after the summer, Guney said.

Dubai Islamic and Dubai World, owner of port operator DP World, will provide 10 percent toward each fund, which will comply with Islamic law banning investment in companies involved in alcohol, armaments and gambling or lending on interest.