Business News

Islamic financing fund established for shipping industry

Nov 11, 2009, 14:08 GMT

Doha - The Qatari investment bank QInvest and Fortis Bank Nederland announced Wednesday they had each committed 50 million dollars to the first ship financing fund to operate under Islamic principles.

QInvest CEO Shahzad Shahbaz said he believed the Sharia-compliant fund, which would soon open to third parties, would appeal to both conventional and Islamic investors.

'Shipping asset values have been disproportionately impacted relative to the global economic down-turn,' Shahbaz said in a statement, adding that this, along with tighter credit markets, would make the fund attractive.

The fund will aim to raise 200 million dollars and will target mezzanine - or later-stage - investment opportunities in deep sea vessels. It was set for an average life of five years.

Fortis Bank Nederland, owned by its government in the Netherlands, said earlier this year it had 7 billion dollars of shipping assets under management.