A partnership between Abu Dhabi Investment House (ADIH), a leading financial institution, and Al Hilal Bank, a UAE-government owned Islamic bank, has successfully closed its Sharia-compliant $100 million Al Wataniya Fund.

The ADIH managed fund was launched during the second quarter of 2009 based on extensive research and studies on the Abu Dhabi market to address a 30 per cent gap between supply and demand within the commercial real estate sector, said a report in our sister publication, the Gulf Daily News.

It also took advantage of the competitive land prices due to the current international financial crisis. The fund plans to finance a development in the Abu Dhabi commercial sector.

"We are delighted and pleased with the successful closing of this fund, the successful partnership with Al Hilal Bank and the contributions of our institutional and individual investors across the board," said ADIH chief executive officer Fawaz Ali Al Jowder.

"The business model of this fund is one of where location of the development is also an important factor to consider. The extensive study and research behind this fund confirmed the investment opportunities available within the Abu Dhabi real estate market which is still healthy thanks to the government directions and initiatives."

"This fund represents a very good opportunity for Sharia-compliant investors," said Al Hilal Bank treasury and investment group executive vice-president Aladin Al Khatib.

"The real estate market in Abu Dhabi is a lucrative one where we can quickly address the growing gap in commercial developments as well as present an investment opportunity,” he added.

"With the need to further develop the infrastructure of this area, we aim to highlight high-yielding opportunities to our clients."

In the near future ADIH will be launching an investment fund addressing the food sector as well as creating a joint venture targeting the health sector in Abu Dhabi, said the report. – TradeArabia News Service