Investment firm bets on a $50m fund

Dubai: Amid the cautious financial climate, the Dubai Multi Commodities (DMCC) is spending $50 million (Dh183.67 million) as the seed investor of BlackRock Global Resources and Mining Fund on the Shariah governed Al Safi Trust platform.

The firm, which invests in equities with a particular focus on commodities, will be managed by BlackRock Inc, a global institutional investment manager with over $1.26 trillion assets under management, officials announced at a press conference on Monday.

"This strategy will impact the investment climate both in the region and beyond. It is part of the DMCC's mission to make Dubai the financial hub for commodity investment," said Ahmad Bin Sulayem, DMCC executive chairman. The fund will be available to investors through Dubai Shariah Asset Management (DSAM) Kauthar Global Resources and Mining Fund, an exclusive feeder fund established by DMCC's joint venture with Shariah Capital.

"The addition of BlackRock means that the Shariah-governed alternative investment strategies seeded by DMCC now available are DSAM Kauthar Gold Fund, DSAM Kauthar Energy Fund, DSAM Kauthar Natural Resources Fund and DSAM Kauthar Global Resources and Mining Fund," a press statement said.

All four, which are feeder funds accounts on the Al Safi Trust platform - where Barclays Capital is the prime broker and custodian - are open to investors on a monthly basis. A total of $200 million has been seeded into the four funds. Eric Meyer, chief executive officer of Shariah Capital, commended the DMCC for being brave enough to invest at a time when the world's economies are in a turmoil.