| Shakarchi: new Qatar-focused fund |
National Commercial Bank has become only the second Saudi Arabian financial services provider to launch a Shariah-compliant mutual fund that will invest in the countries in the Gulf Cooperation Council. The Al-Ahli GCC Trading Equity Fund is an open-ended fund denominated in Saudi riyals with a minimum subscription of SR5,000 ($1,333) and a 1.85% a year management fee.
According to the bank, the fund’s objective is: “To generate long-term capital growth through investing in GCC companies listed in various GCC stock exchanges and which comply with the Shariah criteria for investment.”
It will also invest in murabaha (a contract of sale in which the seller declares his profit and cost) transactions and murabaha funds, all of which must be approved by NCB’s Shariah board.
At a press conference marking the fund’s launch, Haithem Al-Mubarak, head of portfolio management at National Commercial Bank, said: “The [fund] will leverage the strong economic growth in the region for a longer term based on [our] positive and pragmatic overview of the macroeconomic performance of the GCC markets.”