The Abu Dhabi-based fund manager is for the first time providing international clients exposure to equity markets in the Gulf region.

Eshara Capital has launched its first strategy offering global investors access to the United Arab Emirates and Saudi Arabia equity markets as well as upcoming initial public offerings.

The GCC equities strategy provides exposure to US dollar-pegged assets that have AA-rated sovereign backing and yield at least 5 per cent. Eshara said the fund stands to benefit from the oil price recovery, as well various transformation plans in the region that seek to diversify away from hydrocarbon reliance and therefore boost the non-oil private sector. As an example, the firm highlighted the privatisation of Saudi Arabia’s national oil company, Saudi Aramco, which will bring up to $100 billion of stock to market.

“The UAE has a robust and sophisticated equity market and wider financial services sector with highly capitalised banks, a large concentration of institutional and private wealth and several of the world’s largest sovereign funds,” said Alex Guy, Eshara’s chief executive and founder.

“In Saudi Arabia, on top of the Saudi Aramco share sale, we are likely to see a doubling of the Tadawul market capitalisation as up to 20 new companies, state owned share sales and family businesses list on the stock exchange. Being on the ground as we are and having unparalleled access to and knowledge of these sectors will provide our international investors with unique access to these opportunities.”

Eshara's network of investment partners includes Bank of America Merrill Lynch, Julius Baer and Deloitte.