Qatari Islamic lender Masraf Al-Rayan on Monday said it had launched a new GCC-wide fund with a mandate to manage up to $1.1 billion and focus on Gulf equities, as well as fixed income instruments.

"We believe the time is ripe to launch a fund to tap into the region's enormous potential, especially as valuations remain very attractive," said Hussain Ali Al Abdulla, chairman and managing director of Masraf Al-Rayan, in a statement on the Qatar bourse website.

The fund, "Al Rayan GCC Fund" will comply with Islamic principles, and will be managed by Al Rayan Investment.

Several banks in the Gulf region are considering launching Islamic bond, or sukuk, funds, a top fund manager told the Reuters Islamic Finance Summit recently. - Reuters