Nama’a Islamic Money Market Fund

Positioned as a low-risk, Shariah compliant solution for both institutional and retail investors, the Nama’a Islamic Money Market Fund – domiciled in the UAE – is pitched to those seeking an alternative to Islamic fixed deposits.

“While there is no formal Shariah compliant benchmark for money market funds in the region, we utilize a set of internal benchmarks for performance and liquidity comparison,” Asset Management Head Bruno Martorano shared with IFN Investor.

“These include the three-month EIBOR (Emirates Interbank Offered Rate) and SIBOR (Saudi Interbank Offered Rate), prevailing deposit rates, average Sukuk returns and peer Islamic money market fund performance. These benchmarks help us maintain competitive positioning and guide allocation while preserving liquidity and risk discipline.”

Managed by Mada Capital Investment Management, the fund invests in instruments that include Murabahah and Wakalah contracts, Sukuk and Islamic deposits – in line with UAE money market regulations – plus other similar public Islamic money market funds.

This fund invests in all local, regional and global money markets – in Shariah instruments denominated in UAE dirhams, US dollars or any currency that can be hedged against the risk of exchange rate fluctuations relative to the UAE dirham.

The maximum tenor of any investment in the fund will not exceed 397 days – unless these instruments can be liquidated within five working days. The maximum weighted average of the maturity of the fund’s investments is capped at 180 days.

Aiming to preserve capital and generate gains on surplus liquidity for institutions and individual investors, this fund provides a daily cumulative return. Any portion of the realized returns may be obtained at redemption, rather than via profit distributions.

“This reinvestment approach is efficient from a timing and compounding perspective,” noted Bruno. “Unitholders are individually responsible for paying Zakat. There is no Zakat treatment applied at the fund level, enhancing clarity and compliance for investors.”

Subscription is open to all, with entry set at AED100 (US$27.23) – so long as the individuals and entities are eligible to open a bank account in the UAE or a securities brokerage account for investments. The initial subscription period closed on the 25^th July 2025.

The fund’s maximum target is AED1 billion (US$272.29 million), with a minimum operational size of AED250,000 (US$68,074).

*Disclaimer:  The opinions and viewpoints expressed in this Fund Profile do not constitute as recommendations for any funds highlighted. The information presented is not investment advice and should not be treated as such.

Source: Mada Capital Investment Management