Al-Tawfeek firm launches Islamic fund
MANAMA: Al-Tawfeek Company, a subsidiary of Saudi-based Dallah AlBaraka Group, launched a new Islamic-compliant fund aimed at investing in the telecommunications sector, company officials said.
Subscription in Al-Tawfeek Arab Telecommunication Fund will be open for one month and its target capital is $500 million, Hassan Al-Ammari, chief executive officer of Al-Tawfeek Company, told reporters.
“The minimum subscription for individuals is $25,000 and for companies will be $100,000,” Ammari added.
Company officials said the new fund will invest in both listed and non-listed securities of telecommunications and related infrastructure companies in the Middle East and Africa.
“The region is at the centre of attention due to potential growth resulting from unfulfilled demand, for example Africa has the highest subscriber growth rate in the world (37 percent in 2003), whilst penetration is as low as 5.3 percent,” a company statement said.
Islamic-compliant financial institutions do not pay interest on credit instruments, which is considered usury under Islamic sharia law.
They instead make regular payments based on profits from approved investments. —Reuters