MUSCAT -- Al Hilal MENA Fund (AHMF), an open-ended fund based on the Mudaraba structure, operating in accordance with the principles of sharia, will be launched by ahlibank on May 22, 2013. It will be the first sharia-compliant fund to be rolled out by an Omani bank. The initial subscription period will continue up to June 20, 2013.
With the launch of Al Hilal MENA Fund, investors will be provided with an opportunity to participate in the economic growth and prosperity of the region whilst adhering to religious principles, ahlibank said in a press statement.
Sharia compliant investments, owing to their very nature of being asset-backed and direct participation into the tangible and ethical aspects of the economy, are immune to a lesser degree to market disruptions and price volatility. This is reflected in the past performances of leading equity indices.
Sharia compliant investments (as depicted by both Dow Jones Islamic Index and S&P 500 Sharia Index) have consistently out-performed non-compliant investments, as measured by MSCI World Index and S&P 500 index over the past 5 year market-cycle (2007-12), the statement said.
The Fund will open for subscription at RO 1.020 baiza per unit, which includes 20 baiza for issue expenses.
Commenting on the launch of the fund, ahlibank's CEO Abdulaziz bin Mohammed al Balushi said: "We are very proud to be the first Omani bank to launch a Sharia compliant fund, initiatives such as this will facilitate the faster growth of the Islamic finance landscape in the Sultanate."
© Oman Daily Observer 2013
