Nigeria’s Marble Capital plans to launch a Shariah compliant US dollar-denominated fund to fulfil the growing demand for investment opportunities priced in something stabler than some African currencies.
Across the region, a shift has been building toward investment strategies priced in steadier currencies, prodding some investors to move into Shariah compliant dollar-denominated funds, Busola Kuku, head of asset management at Marble Capital, shared with IFN Investor.
“The investing public is not just looking into increasing their asset base, but also into compatible currencies that might be more stable than the local currency.
“ Thus, we are planning to launch our own Shariah compliant US dollar-denominated fund very soon. It is still in the works, pending documentation and regulatory approvals.”
Busola did not give a specific date for the launch but indicated that it could be sometime in the middle of 2025.
To create more buy-in for its upcoming fund, Marble Capital aims to build on the investor confidence generated by its Marble Halal Commodities Fund (MHCF), Busola said.
MHCF, dominated by commodities but also containing assets such as fixed income, returned 35.6% for the year ended the 31st December 2024, helped by higher maize and soybean prices.
Marble Capital’s upcoming fund will target local and international investors alike. Nigerians can use the naira to buy in, though the value of their holdings will be converted to US dollars. Assets in the new fund will likely include Shariah compliant equities, fixed deposits and real estate.
At present, there are two dollar-denominated funds in Nigeria, with at least two more that might be launched this year. Since the naira has been on a downward trend, falling 4.2% since 2025 began, more asset managers have opted to venture into this space, Busola said.
“While returns may be high now, they could dip in the future., But the asset class will remain sustainable. This has prompted at least 20 to 30% of investors to show a strong interest in moving into the US dollar-denominated Shariah compliant fund space.”
Notwithstanding the enthusiasm of those pursuing the stability of the dollar, “some investors remain comfortable with returns from a local currency,” Busola added.
