Business | Banking
Addax Bank launches $35m art fund for Middle Eastern works
Bahrain-based Addax Bank, in partnership with the premier international art fund manager The Fine Art Fund Group, announced the launch of a $35 million (Dh128.6 million) Middle Eastern Fine Art Fund.
- Staff Report
- Published: 23:35 November 20, 2008
Dubai: Bahrain-based Addax Bank, in partnership with the premier international art fund manager The Fine Art Fund Group, announced the launch of a $35 million (Dh128.6 million) Middle Eastern Fine Art Fund by Addax in parallel with the largest fair for modern and contemporary art, ArtParis-Abu Dhabi which is taking place at the Emirates Palace from November 18 to 21.
The fund will target modern and contemporary artwork across the Middle East, and is expected to have an initial term of five years.
"The art market in the Middle East has experienced substantial growth in the past five years driven by burgeoning international demand for Islamic and Middle Eastern art," said Yousef Al Eisa, CEO of Addax Bank.
"The region's art market is now entering an important phase of development as Middle Eastern art artists begin to gain cultural prominence on an international level.
"However, despite these positive indicators for future growth, the market remains largely untapped," Al Eisa added.
The "Middle Eastern Fine Art Fund by Addax" will provide regional investors with the opportunity to participate in the growth that the Middle Eastern art world is currently experiencing.
"We have established a reputation for ourselves throughout the region for bringing innovative and profitable investment opportunities to our clients," said Al Eisa.
Delivering returns
"With the launch of our new art fund Addax is once again well positioned to deliver positive financial returns to its investors and shareholders."
According to experts, the UAE art market alone has the potential to develop into a $250 million industry over the next few years, with the art market in the rest of the Gulf set to reach a value of approximately $100 million. Earlier this year, Christie's, the prominent auction house, fourth sale of modern and contemporary art in the UAE fetched an impressive $10 million.
Spurred by Christie's success in the UAE, other leading auction houses from around the world have set up operations in the region; Bonhams, the UK headquartered international auction house, broke three world records at its inaugural Middle East art auction in March 2008.
The auction achieved total sales of over $13 million, and in a landmark event for the Arab art world saw the first Middle East artist achieve an auction sale of over $1 million.
Iranian Farhad Moshiri's Eshgh was sold for over $1 million with Moshiri setting the record for the highest achieving Iranian artist at an auction. The Bonhams auction also broke the world record for an auctioned Pakistani work of art, Gulgee's Polo Player which sold for $336,000.
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