Tharawat Investment House, the latest innovative Islamic investment house in the Kingdom of Bahrain, announced recently the launch of its first investment product the " Tharawat Sukuk Fund". The fund is an open-ended, Sharia’a compliant investment fund domiciled in the Kingdom of Bahrain investing around 70% of its assets in government and corporate Sukuk in the GCC and MENA areas.
The launch of Tharawat Investment Fund coincides with the 5th Global Islamic Investment Funds & Islamic Capital Markets due to be held in the Kingdom of Bahrain on 25 – 26 May 2009. Many major banks in the region will participate in the event, which is supported by Bahrain Central Bank.
"The launch of Tharawat Investment Fund, our first investment product, stems from the fact that we are the Investment Management partner in the 5th Global Islamic Investment Funds & Islamic Capital Markets. The fund aims to preserve capital and achieve high return for investors through purchasing Sukuk in primary and secondary markets," said Tharawat CEO Aref Mohammed Al Alawi
"The fund also offers investors the choice to receive the fund’s distributions in cash or through issuance of additional Units. The fund targets Accredited Investors from individuals and organizations that are looking for investments that generate higher returns than low and moderate risk bank deposits,"
"As part of our corporate social responsibility and stemming from our belief in sharing our success with all, we have decided to offer the opportunity to the largest number possible of potential investors. Therefore, we set the minimum limit of investment to US$ 100,000 and in increments of US$ 10,000 for those wishing to invest more", explained Al Alawi
"The Sukuk segment is the fastest growing segment of the Islamic finance market. The demand for Sukuk by non-Islamic financial institutions resulted in an increase of Islamic securitization transactions by 700% during 2004 - 2008," he elaborated
"Due to the international financial crisis, lower lending activity and lack of liquidity, international investors sold off their Sukuk holdings in a fire sale and at a deep discount to secure cash. By introducing this fund, we aim to capture this opportunity and make it available for our investors. Global Sukuk markets have begun to recover from their lows, which promises normalization of Sukuk returns in line with its historic rates,"
"However, on a risk-reward basis, Sukuk will continue to offer attractive and safe returns in comparison to other asset classes’, said Al Alawi.
"Tharawat Sukuk Fund is different from other investment funds in many ways. It is fully compliant with sharia’a, as the Sharia’a Supervisory Board at Tharawat Investment House have reviewed the fund and approved it. Also, it provides the benefit of easy exit anytime the investor wishes without any losses or hidden conditions,"
Sharia’a Supervisory Board at Tharawat Investment House have audited, reviewed and approved the fund and all its conditions and operations. The Board consists of Shaikh Nedham Mohammed Saleh Yaqoobi, Chairman (from the Kingdom of Bahrain), Shaikh Dr. Mohammed Abdulrahim Sultan Al Olama, Member (from the UAE), and Shaikh Osama Mohammed Bahar, Member (from the Kingdom of Bahrain).
"All income received from Investments of the Fund may be distributed to Unit holders on a semi-annual basis. Unit holders will have the choice to receive the distribution in cash or through issuance of additional Units. These significant benefits and many other features are not offered by any other fund," said Al Alawi.
"We wish the conference all success and hope that the Kingdom of Bahrain will continue to be the hub for Islamic banks and Islamic banking in the world", concluded Al Alawi. At an authorized capital of US$100 million and paid up capital of US$33.25 million, Tharawat was established on 31st July 2008 in the Kingdom of Bahrain under a category 1 license as an Islamic investment company. Tharawat operates under the rules and regulations of the Bahrain Central Bank. Tharawat seeks to launch a wide range of investment products designed for GCC and other Arab and Islamic markets. Tharawat targets industrial, agricultural and service sector, with less focus on the property sector.
