Shuaa launches Arab Income Fund

Shuaa Capital, the UAE Investment Bank, announced the launch of The Arab Income Fund (TAIF), a fixed income fund that will be dedicated to the Arab World.

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By  Massoud Derhally Published  March 5, 2002

Shuaa Capital, the UAE Investment Bank, announced the launch of The Arab Income Fund (TAIF), a fixed income fund that will be dedicated to the Arab World. The new fund, according to Shuaa, will provide a liquid vehicle for investors wishing to benefit from the potential return of the Arab Fixed Income asset class.

TAIF is an open-ended fund incorporated in the Cayman Islands, with monthly subscription and redemption. SHUAA Capital will be investing its own money in the Fund with the objective of providing high total returns through investing primarily in US Dollar-denominated debt securities issued by governments of the Arab world.

The fund gives exposure to most Arab countries through one single liquid investment, provides professional investment process and active management; takes advantage of major price distortions; and provides effective diversification and low-to-negative correlation with other asset classes.

SHUAA Capital has employed a team of seasoned professionals, with extensive experience in both primary and secondary debt markets in the region. They have participated in over 12 Eurobond offerings as Lead, Joint Lead or Syndicate members for a total issue size of US$3 billion; and have been actively managing Arab Debt portfolios since the inception of this market in 1994, developing a strong track record in this particular asset class.

Commenting on the new fund, Ziad Makkawi, Executive Managing Director, said, “The Arab Income Fund will contribute to the development of Arab Capital Markets. Although still relatively small, the Arab Debt Market is growing at twice the rate of other Emerging Markets. Moreover, this asset class has posted impressive returns in the last few years, in spite of major crises in the financial world.”

“SHUAA Capital is in a unique position to manage this fund, by being present in the area and employing a team of professionals with extensive experience in this asset class. In addition, SHUAA Capital has already developed its own equities indices across 12 Arab Capital Markets and is in the process of developing an Arab Bond Index,” added Makkawi.

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