Dubai Islamic Bank (DIB), the first Islamic bank to have incorporated the principles of Islam in all its practices, has launched a $47m US real estate fund, which invests in eight retail properties in the United States.
The Sharia-compliant fund requires a minimum investment of $25,000. It will utilise Ijara, a Sharia-compliant master leasehold, and offer semi-annual coupon payments with an anticipated yield of 8.25% per year.
Saeed Al Qatami, Head of Wealth Management, DIB, said, “On the heels of the launch of the DIB Water Note, the launch of the US Retail Real Estate Fund marks DIB’s rapid development in the area of wealth management. The bank now offers a diversified menu of investment products that cater to all segments of our large and growing customer base”.
Properties are located across a range of US markets and therefore offer geographical diversity.In addition, the areas in which the properties are located have positive demographic trends, strong daytime populations, moderate to strong average household incomes, strong anchor tenants and retail markets with a positive outlook for the future.