Kuwaiti firm to start Asia fund

Dubai: Asiya Investments, a Kuwaiti firm that focuses on Asian emerging markets, is starting a fund that will invest in shariah-compliant finance for trade between the Middle East and Asia, it said on Monday.

The fund aims to fill a dollar-funding gap for medium-sized Asian firms trading with the Gulf, Asiya said in a statement. There is a shortage of funding for Asian emerging market trade because of the retreat of European banks as they look to beef up their capital ratios, Asiya said.

The Asiya Islamic Trade Finance Fund aims for 5 per cent returns, and will comply with Islam’s prohibition on charging or receiving interest, among other strictures. Asiya is to manage the fund from its offices in Hong Kong, with EuroFin Asia Group as its investment advisor, its statement said.

The firms have put $20 million (Dh73.5 million) of seed money into the fund.