GFH launches Shariah real estate investment

Fund to investment in real estate development and other property projects

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By  Eudore Chand Published  February 5, 2005

Bahrain-based Gulf Finance House Commercial Bank (GFHCB) has launched its maiden portfolio of Shariah compliant, high-yield investment products that are tailored around property and real estate development. Launched within two months since its inception in December 2004, the two products unveiled by GFHCB include the Amlak and the Mudarabah Investment Account. While Amlak offers an opportunity to invest in Bahrain’s lucrative real estate market, the Mudarabah Investment Account yields attractive returns, offering both liquidity as well as diversification of risk. “As a niche Islamic bank, the strategic focus is to take advantage of the dynamic growth in property markets in and out of Bahrain by offering unique investment products to high net worth individuals in Bahrain,” said Esam Janahi, vice-chairman of GFHCB, and chief executive officer of GFH. Ebrahim Hussain Ebrahim, bank general manager, said: “The property investment products areas focused on the high-growth real-estate market of Bahrain. The dollar-denominated Amlak, which will invest in the real-estate sector of Bahrain, has been growing rapidly and is driven by favourable economic conditions and liberalisation of laws pertaining to land ownership.” The minimum investment in the US $25 million Amlak Investment is to be $50 000, with additional subscriptions accepted in multiples of $25,000, aggregating $22.5 million (or 90% of the investment size). The remainder $2.5 million (10%) will be taken up by GFHCB. The investment period is 18 months from the closing date, with a targeted return on capital in excess of 13% per annum. Amlak has been established as a Cayman Islands exempted company for investment in Bahraini real estate. It will do so by acquiring an investment note from a Bahraini Limited Liability Company, which in turn is wholly owned by GFHCB.

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