The fund is open to all investors with a minimum subscription of KD30,000 and multiples of KD1,000.
According to Boubyan Bank, the fund will invest in short and medium-term instruments available in the financial markets such as wakala (deposits) with local banks.
The fund will only invest in Shari’a-compliant financial instruments, as approved by the Sharia board whose resolutions will be binding on the fund’s management.
Boubyan Capital acting CEO Saleh Ahmed Al-Ateeqi said Boubyan’s money market fund allows investors to subscribe and redeem on a weekly basis, which makes the fund attractive to investors.
"For investors, it offers the flexibility of a savings account with weekly liquidity, and expected returns that are competitive with wakala deposit rates," he added.
Boubyan Capital, which is a wholly-owned subsidiary of Boubyan Bank, is also expected to launch a number of investment funds that suit the needs of investors seeking Shari’a-compliant investments.
