Dubai Islamic Bank (DIB) has launched a three-year Islamic certificate structured to return 90 per cent of invested capital to customers five business days after the issue date of the certificate.

The product offers investors an opportunity to invest in commodity markets while benefiting from diversification across investment strategies, a statement said.

The Sharia-compliant certificate is linked to the Deutsche Bank Liquid Commodities (DBLCI) Apex Index, which aims to generate superior results by investing in a risk-weighted basket of three underlying commodities indices (DBLCI Mean Reversion Enhanced Index, the DB Commodity Harvest Index and the DBLCI Momentum Index).

Historically, the three underlying indices have exhibited low correlation to each other, enabling the DBLCI Apex Index to generate potentially higher returns in all economic cycles.

There will also be potential profit distribution after one, two and three years based on the performance of the DBLCI Apex Index. Profit distribution will be calculated on the initial invested amount.

“We are delighted to launch this Islamic certificate to customers in the UAE. The product has a number of attractive features, not least the return of 90 per cent of capital invested five days after the Issue Date,” said Dr Adnan Chilwan, deputy CEO - chief of consumer and wholesale banking, DIB.

“By giving exposure to commodities markets, while benefiting from a diversified investment strategy, this certificate is an excellent opportunity for investors to achieve stable returns with lower volatility,” he added.

The US dollar-denominated certificate, which is distributed by DIB and issued by Al Mi’yar Capital SA, is available from DIB with a minimum investment of $25,000, according to the statement. – TradeArabia News Service