UAE: ASB Capital, an asset management firm in the UAE, has announced the launch of a new global equity Shariah compliant fund which will be managed in partnership with US-headquartered asset manager State Street Global Advisors (SSGA). The fund will provide family offices and institutional and individual investors with exposure to publicly listed companies across global equity markets.
Domiciled in the Dubai International Financial Centre (DIFC) and regulated by the Dubai Financial Services Authority, the fund will be managed by SSGA’s Active Fundamental Equity team, which oversees US$18 billion in assets under management (AuM) as of the 31st December 2024.
“Our collaboration with State Street Global Advisors allows us to offer investors unique opportunities to diversify their portfolios across sectors and geographies. Together, we are bringing world-class investment opportunities to the region and advancing the growth of Shariah compliant ethical investment solutions,” said Hichem Djouhri, the senior executive officer at ASB Capital.
ASB Capital was launched by Al Salam Bank earlier this year with an initial AuM of US$4.5 billion, while in December 2024, SSGA launched the SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS ETF, tracking the newly created index J.P. Morgan Saudi Arabia Aggregate Index to provide investors with exposure to liquid US dollar-denominated and Saudi riyal-denominated government and quasi-government bonds and Sukuk.
Emmanuel Laurina, the head of Middle East & Africa at SSGA, added: “By working with ASB Capital, we combine their deep regional insight with our global capabilities, providing investors with access to a curated portfolio of high conviction and high-quality global equities. This collaboration allows us to deliver a sustainable, investment product that aligns with the rising demand for Shariah compliant ethical investment solutions focused on strong fundamentals and targeting long-term growth.”
This growing demand for Shariah compliant solutions is seen in market trends, as an industry expert told IFN that the DIFC is seeing more specialist funds emerging. Approximately 10% of the funds in the DIFC are Islamic and around 20% of DIFC fund managers now offer Shariah compliant investment solutions.
In line with this, IFN Investor data shows that the UAE manages 48 Islamic funds, with AuM of US$3.83 billion.
