Qatar Islamic, the country’s second-largest Islamic lender by market value, and Kuwait-based Global Investment House GLOB.KW will manage the fund, called Sanabel, the bank said in a statement.
The fund would target local and foreign investors and focus on investing in companies that comply with Islamic law, which bans charging interest, alcohol, gambling and pornography.
The Doha benchmark has fallen 16.67 percent this year after dropping more than 35 percent in 2006.
Investors can subscribe to the fund beginning in May with minimum subscription of 50,000 riyals, the bank said.
Qatar is home to the world’s third-largest natural gas reserves.