Rasmala to launch two funds focused on UAE next year

Rasmala, the London-based investment manager plans to launch two funds focused on the UAE next year even as oil prices slow down the economy, its chief executive said.

Rasmala, which has rebranded from EIIB-Rasmala, plans to launch a property fund and a credit fund.

“We are very bullish about the UAE market. We think this market is heading in the right direction and the economy is strong,” said Zak Hydari.

The firm, which is listed on the AIM market of the London Stock Exchange, invests in Europe, the United States, Middle East and Africa through various funds from real estate to leasing. It currently has US$1.1 billion assets under management.

Rasmala is investing in the UAE despite the oil slump to an 11-year low, which will hit government revenues and slow down the economy.

“Wherever oil is at, people have to make investment decisions with the capital they have, and sometimes when you have less capital you have to manage the capital even better,” said Mr Hydari.

The credit fund will provide financing to borrowers who otherwise cannot get money from banks, which are increasingly bound by capital requirements, especially under Basel III banking standards.

“Banks not just in the region but around the world have more and more capital requirements so they are focusing their attention on their biggest clients,” said Mr Hydari. A “massive space” was opening to provide finance to “everybody else”, he added.

In the property fund, the company plans to invest in commercial assets across the UAE. The company wants to turn the fund in the future into a Real Estate Investment Trust (Reit).

Currently, the firm focuses on property and invests capital from UAE and Arabian Gulf investors into Europe and the United States.

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