National Bank of Kuwait has launched the Islamic Global Real Estate Securities Fund, which will invest in real estate throughout the GCC region. The fund will be managed by the bank’s investment arm, NBK Capital.
NBK Capital's Chief Executive Officer, Salah Al Fulaij, said in a statement that the launch of the Fund will enable clients to invest in diversified global real estate securities that comply with Islamic Shariah principles.
Al Fulaij said the Fund was established to achieve long term capital growth through Islamic compliant real estate portfolios. Further details on its size were not disclosed.
The fund will consist of two diversified portfolios, the Class A portfolio in which the the firm can utilize Shariah compliant leverage up to 30% and the Class B portfolio that will not use any leverage.
Both portfolios will invest in real estate assets, development and operating companies, real estate investment trusts, and the securities of companies providing management & investment advisory services to real estate investment, development and operating companies.
The Fund has been approved by the independent Shariah board for Islamic funds marketed by NBK in Kuwait.