Barclays Capital plans to launch the Al Safi Trust, a Shariah-compliant investment platform, in association with Shariah Capital, the US based and Aim-listed company, by the end of the year. Al Safi will initially comprise six Shariah-compatible sub funds with specific investment styles. Each fund will offer independent reporting, giving Islamic investors exposure to hedge funds. Harry Martin, co-head of Barclays Capital's Middle East market solutions group, said Barclays and Shariah Capital plan to raise up to $500 million for the fund within a year in the US. Shariah Capital will act as the Shariah advisor, while Barclays Capital is responsible for marketing, as well as acting as prime broker. Managers who wish to attract Islamic investors and manage existing strategies with Shariah principles will be invited to utilise the platform. The platform gives managers a way of accessing the potentially enormous Shariah investment market. Eric Meyer, chief executive of Shariah Capital, noted around 60 per cent of Saudi bank accounts are interest free accounts, with significant demand for Shariah elsewhere in the Muslim world. He pointed to the growth of the Sukuk market as evidence for the latent demand for Shariah compliant financial instruments, and said demand will grow as supply becomes available. Frank Gerhard, Barclays Capital's head of project strategy in fund linked derivatives, said it may not be possible to deliver Shariah-compliant versions of all hedge fund strategies, but the platform would move into real estate and commodity funds next.