In a significant move that underscores the growing global appetite for ethical and Shari’a-compliant investment solutions, Dubai-based ASB Capital, a dynamic and purpose-driven asset management firm, has announced the launch of a groundbreaking new Shari’a Global Equity Fund. This innovative fund, strategically domiciled in the prestigious Dubai International Financial Centre (DIFC) and rigorously regulated by the Dubai Financial Services Authority (DFSA), will be managed in a landmark partnership with the global investment powerhouse, State Street Global Advisors (SSGA).
This collaboration marks a pivotal moment in the landscape of Islamic finance, particularly within the burgeoning investment sector of the UAE and the wider Middle East and North Africa (MENA) region. The Shari’a Global Equity Fund is meticulously designed to provide a diverse range of investors – from sophisticated institutional players and discerning family offices to astute individual investors – with carefully curated exposure to a broad universe of publicly listed companies spanning global equity markets, all while adhering strictly to the principles of Shari’a law.
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A Fusion of Expertise: Regional Insight Meets Global Acumen
The strategic alliance between ASB Capital and State Street Global Advisors represents a powerful synergy of regional expertise and global investment management prowess. ASB Capital, with its deep understanding of the investment landscape within the UAE and the broader MENA region, brings invaluable local market insights and a commitment to providing innovative and ethical investment solutions that resonate with the values of its clientele. Launched earlier this year with an impressive initial Assets Under Management (AUM) of US$4.5 billion, ASB Capital is rapidly establishing itself as a key player in the region’s evolving financial ecosystem, driven by a focus on sustainability and long-term value creation.
Partnering with ASB Capital is State Street Global Advisors, a name synonymous with decades of experience and a formidable track record in managing global equity strategies, including a well-established history of providing Shari’a-compliant investment solutions to meet the increasing demand in the Middle East and beyond. As of December 31, 2024, SSGA’s Active Fundamental Equity team, which will be directly responsible for managing the new Shari’a Global Equity Fund, oversaw a substantial USD 18 billion in assets. This seasoned team brings to the table a research-driven investment approach honed over three decades, leveraging SSGA’s proprietary Confidence Quotient Framework to identify high-quality, durable-growth companies with robust fundamentals and attractive valuations.
Hichem Djouhri, Senior Executive Officer at ASB Capital, eloquently articulated the significance of this collaboration, stating that “The Fund reflects ASB Capital’s ongoing commitment to innovation and forming strategic partnerships with renowned global asset managers, unlocking access to global markets for investors in the region and beyond. Our collaboration with State Street Global Advisors allows us to offer investors unique opportunities to diversify their portfolios across sectors and geographies. Together, we are bringing world-class investment opportunities to the region and advancing the growth of Shari’a-compliant ethical investment solutions.”
Echoing this sentiment, Emmanuel Laurina, Head of Middle East & Africa at State Street Global Advisors, emphasized the complementary nature of the partnership: “State Street Global Advisors brings decades of expertise in managing global equity strategies, including Shari’a compliant ethical investment solutions, to meet growing demand in the region. By working with ASB Capital, we combine their deep regional insight with our global capabilities, providing investors with access to a curated portfolio of high conviction and high-quality global equities. This collaboration allows us to deliver a sustainable, investment product that aligns with the rising demand for Shari’a compliant ethical investment solutions focused on strong fundamentals and targeting long-term growth.”
Michael Solecki, Chief Investment Officer for Active Fundamental Equities at State Street Global Advisors, further highlighted the investment philosophy underpinning the fund: “We are pleased to be collaborating with ASB Capital on this exciting opportunity bringing our unique focus on quality, durable growth and reasonable valuation to their platform.”
Riding the Wave of Ethical Finance: The Ascendancy of Shari’a-Compliant Investing
The launch of this new Shari’a Global Equity Fund comes at a pivotal time for the global Islamic finance industry, which is experiencing significant and sustained growth. Projections indicate that the global Shari’a-compliant finance industry is on track to surpass a staggering USD 3.5 trillion in assets by 2025, a testament to the increasing demand for ethical and faith-based financial products from a growing and increasingly sophisticated investor base worldwide. Recent reports suggest even more ambitious figures, with some anticipating the market to exceed USD 5 trillion shortly, underscoring the robust momentum behind this sector.
This growth is being fueled by a confluence of factors, including a rising global Muslim population with a strong preference for Shari’a-compliant financial solutions, increasing awareness and understanding of Islamic financial principles, and a growing appetite for ethical and socially responsible investing that aligns with the core tenets of Islamic finance. The principles of Shari’a finance, which prohibit interest (riba), promote risk-sharing, and emphasize ethical considerations in investment decisions, are increasingly resonating with a broader audience beyond Muslim investors, who are seeking investments that align with their values and contribute to a more sustainable and equitable financial system.
The UAE, with its strategic position as a leading financial hub in the Middle East and its strong commitment to developing the Islamic finance sector, provides an ideal domicile for this new Shari’a Global Equity Fund. The robust regulatory framework of the DIFC and the oversight of the DFSA offer investors a high degree of confidence and security. This strategic positioning within the UAE further enhances the fund’s appeal to investors across the region and beyond who are seeking Shari’a-compliant investment opportunities within a well-regulated and internationally recognized jurisdiction.
Unlocking Global Opportunities: Diversification and Long-Term Value
The primary objective of the Shari’a Global Equity Fund is to provide investors with carefully curated exposure to a broad spectrum of publicly listed companies across global equity markets that adhere to stringent Shari’a compliance standards. This global mandate offers investors a unique opportunity to diversify their investment portfolios across various sectors, industries, and geographical regions, potentially mitigating risk and enhancing long-term returns.
Managed by SSGA’s experienced Active Fundamental Equity team, the fund will employ a rigorous, research-intensive investment approach. This approach, honed over three decades, focuses on identifying companies with strong fundamentals, sustainable growth prospects, and attractive valuations. The integration of SSGA’s proprietary Confidence Quotient Framework further strengthens the investment selection process, providing a disciplined and data-driven methodology for identifying high-quality businesses that are well-positioned for long-term success.
For institutional investors, family offices, and high-net-worth individuals in the UAE and the wider MENA region, this Shari’a Global Equity Fund offers a compelling avenue to align their investment strategies with their ethical and religious values without compromising on the potential for attractive returns and diversification benefits. The partnership between ASB Capital’s regional insights and SSGA’s global investment expertise creates a unique value proposition, providing investors with access to world-class investment management and a carefully constructed portfolio of Shari’a-compliant global equities.
ASB Capital: A Vision for Ethical and Innovative Investment
The launch of this Shari’a Global Equity Fund is a testament to ASB Capital’s overarching commitment to innovation and its dedication to providing bespoke wealth solutions that meet the evolving needs of its diverse clientele. With a strong foundation rooted in the legacy of Al Salam Bank, ASB Capital offers a comprehensive suite of services across public and private markets, investment banking, and placement services. Licensed by the DFSA, the firm is driven by a clear purpose: to deliver performance-driven financial solutions that foster sustainable growth and create long-term value for its clients and the wider community.
ASB Capital’s strategic focus on the MENA region, coupled with its commitment to forging strategic partnerships with leading global asset managers like State Street Global Advisors, underscores its vision of seamlessly bridging regional investment opportunities with global markets and vice versa. By prioritizing ethical and sustainable investment strategies, ASB Capital aims to cater to the growing appetite for values-based investing in the region, aligning financial goals with principles of integrity and long-term responsibility.
State Street Global Advisors: A Legacy of Global Investment Stewardship
For over four decades, State Street Global Advisors has served as a trusted partner to the world’s governments, institutions, and financial advisors, building a reputation for its rigorous, risk-aware approach to investment management. As pioneers in index and ETF investing, SSGA has consistently demonstrated its ability to adapt to evolving market dynamics and develop innovative investment solutions to meet the diverse needs of its global client base. With US$ $4.73 trillion in assets under management as of the latest figures, SSGA ranks among the world’s largest asset managers, a testament to its expertise, scale, and commitment to delivering value to its clients.
SSGA’s established track record in managing Shari’a-compliant investment solutions further underscores its suitability as a strategic partner for ASB Capital in this new Shari’a Global Equity Fund. By combining its deep understanding of global equity markets with a commitment to adhering to Islamic finance principles, SSGA brings a wealth of experience and expertise to this collaboration, ensuring that the fund is managed with the highest standards of both financial rigor and Shari’a compliance.
A Promising Horizon for Ethical Investing in the UAE and Beyond
The launch of the Shari’a Global Equity Fund by ASB Capital in partnership with State Street Global Advisors represents a significant step forward for the Islamic finance industry, particularly within the UAE and the broader MENA region. This innovative fund offers investors a compelling opportunity to participate in global equity markets in a manner that is fully aligned with their ethical and religious values. By combining regional expertise with global investment acumen, ASB Capital and State Street Global Advisors are poised to tap into the growing demand for Shari’a-compliant investment solutions and contribute to the further development of a more diverse and inclusive global financial ecosystem. As the world increasingly seeks investment opportunities that prioritize both financial returns and ethical considerations, this new fund stands as a beacon of innovation and a testament to the growing significance of Islamic finance on the global stage.
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