Islamic Banking

First GCC Sukuk Fund Launched in Zurich

Paul Adams, Geneva, 16 November 2006

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The world's first GCC-oriented Sukuk fund, the Islamic counterpart of the conventional bond fund, was officially launched yesterday by the fund's chairman Saudi-based Sheikh Mohammed Abudawood, during the International Islamic Finance Forum in Zurich.

Sheikh Mohammed said the fund "closed a wide gap in the Islamic financial industry as replacement of bonds had not previously been available to a wide base of Muslim investors".

Mark Mortimore, executive director of Encore Fund Management, the fund's management company, said that "the fund is going to invest in not less than 75 per cent in Sukuk and up to 25 per cent of Shariah-compliant syndications in order to enhance the yield".

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