ADIB launches new asset-backed investment product: Al Shorouq

ABU DHABI — Abu Dhabi Islamic Bank (ADIB) has launched 'Al Shorouq', a Shariah-compliant open-ended investment product that will invest in emerging, blue-chip stocks and real estate projects.

By Haseeb Haider

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Published: Thu 7 Sep 2006, 8:54 AM

Last updated: Sat 4 Apr 2015, 4:17 PM

"Al Shorouq 'I'Limited is a special purpose vehicle (SPV) registered in the Cayman Islands for the sole purpose of investing in real assets owned by Abu Dhabi Islamic Bank. Al Shorouq will purchase and hold the assets for the benefit of the investors," said Ahmad Darwish bin Dagher Al Marar, Managing Director of ADIB.

Al Shorouq is regarded as a first of its kind investment product launched in the entire Middle East market, to invest in asset-backed projects and securities, which itself is a trillion US dollar market world-wide.

The finances subscribed by Al Shorouq would be invested in real estate as well as Shariah-compliant manufacturing projects.

"The new programme will mainly invest in companies with high stock market ratings, and those that engaged in wide commercial activity regionally and internationally, and dividends will be distributed to subscribers on a bi-annual basis," Al Marar said.

ADIB is rapidly developing a diversified menu of investment and financial products and Al Shorouq is the latest in a series of investment and financial products funds launched by ADIB.

ADIB will act as Wakeel (sponsor) for the issuer. Al Marar said that Al Shurouq requires a minimum investment term of two years for maturity and will provide investors with the opportunity to invest in physical assets without paying management or subscription fees. The fund is targeting an estimated profit rate of six per cent per annum with minimal risk.

Ahmad Darwish Bin Dagher Al Marar said, "ADIB is introducing an innovative new element to the bank's portfolio of investment and finance products. This is a clear indication of ADIB's aim to develop a series of products that will cater to all segments of our customer base. This product provides clients with a diverse investment portfolio on stable financial markets and an attractive, alternative investment solution with attractive rates of return and minimum risk."

The minimum investment to take part in Al Shorouq is Dh200,000 for individuals and corporations, which is equivalent to two Certificates of Investment, each with a face value of Dh100,000. Supervision and management of the assets and investments in the Al Shorouq program will be conducted by highly qualified personnel and financial analysts.

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