Dubai: Despite upheaval and uncertainty in the stock markets last year, Dubai has been attracting global investors to Islamic investment funds, according to Failaka Advisors, a fund monitoring company.
Some of the best-performing Islamic equity funds are from global investment firms operating from Dubai, such as Permal and DWS, a division of Deutsche Bank.
According to Failaka, last year was particularly good for Islamic equity funds, with GCC markets performing well compared to 2006. By the end of 2007, the industry, for the first time, approached $20 billion in assets.
"The size of this market has tripled over the past five years," said Tariq Al Rifai, Failaka's chairman.
Last year, much of the growth in Islamic equity funds came from GCC investors directed towards funds investing in GCC markets. Funds investing in GCC markets represent over half the entire Islamic equity fund industry.