Boubyan Bank announced Sunday that it floated an investment fund in Kuwaiti dinar at the Kuwait Stock Exchange (KSE) with the aim of promoting investment in short and medium-term available financial derivatives which comply with the rules of Islamic Sharia.
Saleh Al-Ateeqi, acting Chief Executive Officer (CEO) of Boubyan Capital Investment Company, a subsidiary of Boubyan Bank, said in a statement today, that the fund aims at providing competitive returns corresponding to the rules of Islamic Shariaa through increasing the net value of assets along with achieving a high level of liquidity.
Al-Ateeqi added that the fund, which is run by Boubyan Bank administration, is open to all investors to subscribe at a maximum of KD 30,000 starting from the multipliers of KD 1,000, noting that the fund will focus on investment in high-quality and low-risk securities.
On the method of joining and quitting the new fund, Al-Ateeqi made clear that both subscription and refunding are available on a weekly basis in what makes the current fund a distinctive one that meets high turnout among investors.
He added that the fund provides investors with flexibility like saving account with a weekly liquidity, expected competitive returns compared with returns from deposits.
On the investment's strategy, Al-Ateeqi said that the new fund seeks to invest in short and medium-term derivatives which comply with the Islamic Sharia and are available at stock markets like deposits.
He also said that the fund will not invest in any financial tool that does run counter to the Islamic Sharia, adding that subscription applications are available at all branches of Boubyan Bank which are found all over Kuwait.
Boubyan Bank plans, through Boubyan Capital Company which the bank possesses hundred percent of its equities, to float several investment funds in line with the investors requirements who want to invest in accordance with the rules of Islamic Sharia, Al-Ateeqi made clear.
He also said that the company's activities revolve around two themes the first is to run the investments and assets of Boubyan Bank through direct investments department, and real estate investments department, and the other theme covers offering the services of asset management, and electronic trading to clientele.
Boubyan Capital was founded in 2007, though it went into operation in August 2010 after Boubyan Bank made a decision on putting it into action.