DUBAI: Dubai's Binghatti said on Monday it had launched an asset management firm aiming to manage around $1 billion in Shariah-compliant private credit and real estate investments to diversify its portfolio and broaden access to alternative capital. 

Binghatti Capital will be based out of the Dubai International Financial Centre (DIFC) and has secured regulatory approval to work with professional clients exclusively, the developer said in a statement.

"The creation of an asset management arm represents a strategic move to deepen Binghatti Holding's investment footprint and enhance access to alternative capital," Binghatti Capital's Executive Director Katralnada Binghatti said.

Under its real estate strategy, Binghatti Capital will focus on acquiring and selling off-plan residential properties as well as the acquisition, development and sale of residential projects.

Its private credit strategy will focus on supply chain financing in the real estate sector, which expanded in Dubai in recent years, propelled by large-scale infrastructure spending and generous income tax policies that have attracted thousands of international investors.

Other asset managers in the Gulf, including Amwal Capital Partners, have also expanded into the private credit space, a form of non-bank lending, typically involving direct loans to mid-sized companies, real estate developers, or asset-backed borrowers.

(Reporting by Federico Maccioni, Editing by Louise Heavens)