Al Rajhi Group, a Saudi Arabia petrochemical conglomerate that has become increasingly involved in property, is starting a shariah-compliant $300 million (€190 million) Singapore-based fund that will invest in East Asian property.
Al Rajhi said in a statement that the fund is being launched as a joint venture with Singapore investor Yusof Wahid. The Saudi Arabian family-owned business will own 80 percent of the fund, and Wahid will own 20 percent.
The company said that the fund, which will be Shariah-compliant, will make an initial investment of $100 million in an undisclosed project. Shariah law forbids charging interest and investing in certaint types of property such as those selling alcohol or pork.
This is not the first property venture for the firm. In 2005 the company entered into a partnership with UAE-based Tameer Property, acquiring 50 percent of the company. Tameer has launched several large projects in the UAE, including the Princess Tower in Dubai and the Al-Amira Tower, the tallest tower in Sharjah.