* Islamic Real Estate Fund Launched Focusing On Dubai?s Property MarketAMLAK Finance PJSC has launched a new US$75 million Islamic real estate fund which will focus on investing in Dubai’s property market using the principles of Shariah law.
The close-ended AMLAK First Real Estate Fund is available for individuals or corporate investors who aim to achieve medium term capital growth through investment in the Emirate’s fast-growing real estate sector.
The term of the fund will be for three years and it has a minimum subscription level of US$25,000. The fund has a projected rate of return of at least 6% and will use an Islamic financing technique known as Ijarah, a form of leasing contract.
“The launch of this Fund is testament to our confidence in the strength of the real estate sector in Dubai,” commented Mohammed Ali Al Hashimi, CEO of AMLAK Finance.
"There has been strong interest in property acquisition by individuals and corporations, and this has been fuelled by Dubai’s vision to become the commercial and tourist hub for the region. We expect this upward trend to continue well into the future,” Al Hashimi observed.
According to the Ministry of Economic Planning, the population of Dubai is set to reach two million residents by 2010, up from the current population of 1.2 million and placing considerable pressure on the local real estate market.
Moreover, the imminent approval of real estate ownership laws is likely to contribute significantly to the growth in demand for real estate.
Established in October 2000, AMLAK Finance PJSC, is a pioneer in Islamic mortgage financing, and is now the largest publicly held Islamic finance company in the UAE.