Rasmala completes sharia-compliant warehouse investment

WarehouseDubai-based asset manager Rasmala has bought 72 warehouses in a sharia-compliant real estate investment deal backed by Ajman Bank. The acquisition, for 300 million dirhams ($82 million), was structured as a sale and leaseback arrangement for the next seven years. The firm says the 31 tenants are in sectors such as food and beverage, retail and manufacturing. Zak Hydari, group chief executive of Rasmala, said the firm plans to invest another billion dirhams ($272 million) in UAE real estate in the next twelve months. Mohamed Amiri, chief executive of Ajman Bank, described the deal as an innovative sharia-compliant investment solution. Covering nearly 600,000 square feet, the warehouses are situated in Dubai Investments Park, a mixed-use complex close to Jebel Ali Free Zone, a sea port and business hub. Islamic law, known as the sharia, prohibits interest on money but permits investors to earn rent. Sharia-compliant investments, such as sukuk, are typically structured around an underlying real asset such as property. ©2016 funds global mena

Executive Interviews

INTERVIEW: Protecting the investment

Nov 23, 2017

Rasmala’s trade finance fund recently passed $100 million in assets. Doug Bitcon, head of credit strategies, explains why he has to be hands-on.

EXECUTIVE INTERVIEW: A natural interest in the topic

Mar 08, 2017

Since 2016, Guillermo Ortiz has been a chairman of Latin America’s BTG Pactual. The former central banker of Mexico talks to Nick Fitzpatrick.

Roundtables

ROUNDTABLE: Charting the pace of reform

Nov 23, 2017

Saudi Arabian index inclusion, the onset of taxes and the Dana Gas controversy were among the issues discussed by our cross-industry panel. Chaired by George Mitton in Dubai.

SOUTH AFRICAN ROUNDTABLE: Spirit of Ubuntu

Mar 08, 2017

The move to a three-day settlement cycle, the appearance of new stock exchanges, and recent rules on hedge funds were discussed by our panel in Cape Town. Chaired by George Mitton.