A new Islamic investment manager, Fajr Capital, backed by several sovereign wealth funds has launched in Dubai.
Based in the Dubai International Financial Centre (DIFC), Fajr also has offices in London and Kuala Lumpur and is headed by Iqbal Khan, formerly the founding chief executive of HSBC’s Islamic banking and investment business Amanah.
The firm said it intends to be an “active and enabling investor” in portfolio companies and would be launching a suite of products aimed at Muslim markets.
Investors in the company, which has been seed-funded to the tune of $600m, include the sovereign investment vehicles Khazanah Nasional Berhad of Malaysia, Brunei Investment Agency and Abu Dhabi Investment Council, and the private Saudi-based firm MASIC, which is a member of the Al Subeaei Group.
The firm has appointed independent Shariah supervisors to ensure “consistency with Islamic legal and ethical principles”.
Khan said of the new venture: “The global financial crisis has highlighted the need for an ethical and community-based approach to investment. The Islamic financial services industry is strategically positioned to fulfil this need in our target markets.
“We see these markets as our home, and wish to work with local partners and indigenous management to grow our portfolio companies and to increase the overall market share for Islamic financial services.”
