National Bank of Kuwait has launched the Islamic Global Real Estate Securities Fund, which it says is the first real estate securities fund of its kind targeting sophisticated investors in the Gulf region.

The fund has begun to deploy its capital by investing in real estate securities in Asia, Europe and the US, seeking to take advantage of highly discounted prices in real estate securities that are currently trading in global markets.

According to NBK Capital's head of wealth management, Nabil Maroof, the fund has been established to achieve long-term capital growth through Islamic-compliant real estate portfolios.

The fund comprises two separate portfolios that will each invest in a diversified portfolio of real estate securities including real estate investment, development and operating companies, real estate investment trusts, and the securities of companies providing management and investment advisory services to investment, development and operating companies.

Maroof says the fund has been approved by the independent Shariah board for Islamic funds marketed by NBK in Kuwait, composed of Sheikh Khalid Mathkor Al-Mathkor, Sheikh Essa Zaki Shakra, and Sheikh Abdul Aziz Khalifa Al-Qassar.

The Fund is denominated in US dollars with a minimum initial subscription of USD250,000 for Class A shares and USD 25,000 for Class B, and will provide monthly liquidity.