A unit of Citigroup has won approval from Kuwait's ministry of commerce and industry to invest in a new Islamic investment firm, ministry documents showed.

Citigroup Global Markets will invest KD2.5 million ($9.16 million) in Al Raya Investment Company, according to a decree from the ministry.

Kuwaiti fund manager Kipco Asset Management Company (Kamco) said in January it had finalised selling shares in a private placement in a new Islamic investment firm after raising its capital to KD25 million from KD17 million, divided into 250 million shares.

Kamco said in November it could list shares of Al Raya within three to five years in Kuwait and on the Dubai Financial Market.

'This is going to be the first specialised international asset management company in the Middle East investing globally in accordance with Islamic law,' founders committee chairman Hazem Al-Braikan told Reuters in November.

Shares were offered at 100 fils per shares plus an extra 5 fils subscription fee. There are 1,000 fils to the dinar. Kamco is a unit of major investment firm Kuwait Projects Company.-Reuters