Dubai-based asset manager Shuaa Capital has announced the launch of three shariah-compliant funds backed by secured commitments worth $75m on the Abu Dhabi Global Market (ADGM).
The open-ended products are expected to be the largest of their kind to have been listed on the ADGM, Abu Dhabi's financial centre and free zone.
The Shuaa High Yield Sukuk Fund, Nujoom Aggressive Fund and Nujoom Balanced Fund are the first Sharia-compliant funds within an ICC umbrella to launch in the Abu Dhabi Global Market (ADGM).
The number of Sharia funds available to investors is yet to match the growing demand for Islamic finance products across the world."
One of the funds, the Shuaa High Yield Sukuk Fund, will invest in a diversified portfolio of sukuk instruments, including high-yield sukuk, shariah-compliant fixed income investments and other collective investment funds.
In a statement, Shuaa Capital said: "With the three funds, Shuaa's aim is to serve institutional clients and its partners in the insurance industry."
The funds will be open to longer-term insurance and pension institutional investors and are offered through Allfunds Bank platform.
Jassim Alseddiqi, the firm's CEO, said: "The number of Sharia funds available to investors is yet to match the growing demand for Islamic finance products across the world. This is because not enough fund managers offer options in the much sought after Sharia space, and even the funds available either have small AUMs or are close ended. As a result, the choice of strategies remains limited."
"The current climate of uncertainty amid the covid-19 pandemic has created disruption in the global markets, presenting our funds with investment opportunities that would not have been available under normal market conditions."
Shuaa has $13bn in AuM, as of 1 September 2020.