Itqan is an Islamic investment company in Saudi Arabia. The company has planned to develop a Sharia-compliant brokerage arm and is about to launch a $200 million education private equity fund. This was unveiled to the Reuters by the chief executive of the company. The investment firms in the Arab kingdom are poised to see an uptick because the Arab’s biggest stock exchange which is Saudi stock exchange is set to open for direct investments from foreign investors.
When Adil Dahlawi, managing director and chief executive of Itqan capital spoke to people, he mentioned that the firm will be building its capacity as an asset and wealth management arm of the Bahrain’s Al Baraka Banking group. This new arm will be developed as the joint venture with the Bahrain based brokerage Mubhasher Finance Service, and the branch at Al Baraka will be used for launching in an initial of five countries. The five countries include turkey and South Africa. He added to the reporters.
The new business is expected to be launched in a few months and the investments they make will take almost six to twelve months’ time. This prediction is based on what Dahlawi, the chief executive of Itqan told to the reporters. He has also mentioned that the shareholding venture is not yet finalized. It is also expected that the shareholding structure would be finalized soon so that the investors will further move with the launch and investments.
What exactly the deal is!
According to the company’s ideas, the venture includes ideas of sharia investment to be offered including stock screening, margin trading and their derivatives. Though the firm concentrates of investments, they also invoke themselves into other features of share markets. But the very major aspect to be noticed is that the Islamic principles ban outright speculations and interest based lending. Hence sharia-compliant margin trading usually offers cost-plus sale arrangement known as Murabaha.
The Murabaha trading platform was initiated by the NASDAQ Dubai last year alongside Emirates Islamic Bank. The same trading terminologies will be followed by the itqan firm now in the Sharia – compliant margin trading now. Dahlawi added to the reporters that “itqan is also trying to launch an education focused private equity fund and will file for approval with the Saudi regulator by the end of this month”. Thus itqan has planned for both sharia – compliant brokerage arm as a joint venture with Bahrain’s Al Baraka Banking group and a $200 million education focused private equity fund, which will get its approval within this month end.
The education focused private equity fund has a target size of 750 million riyals which is again $200 million and it is mentioned that the company will be focusing on developing a series of Greenfield projects in the Arab kingdom. The company is soon expected to be launched in Arab kingdom. The plans for the venture are at full fledge and are yet to get approved. Education equity fund will get approved this month and the sharia-compliant may take few more months experts told.
When Adil Dahlawi, managing director and chief executive of Itqan capital spoke to people, he mentioned that the firm will be building its capacity as an asset and wealth management arm of the Bahrain’s Al Baraka Banking group. This new arm will be developed as the joint venture with the Bahrain based brokerage Mubhasher Finance Service, and the branch at Al Baraka will be used for launching in an initial of five countries. The five countries include turkey and South Africa. He added to the reporters.
The new business is expected to be launched in a few months and the investments they make will take almost six to twelve months’ time. This prediction is based on what Dahlawi, the chief executive of Itqan told to the reporters. He has also mentioned that the shareholding venture is not yet finalized. It is also expected that the shareholding structure would be finalized soon so that the investors will further move with the launch and investments.
What exactly the deal is!
According to the company’s ideas, the venture includes ideas of sharia investment to be offered including stock screening, margin trading and their derivatives. Though the firm concentrates of investments, they also invoke themselves into other features of share markets. But the very major aspect to be noticed is that the Islamic principles ban outright speculations and interest based lending. Hence sharia-compliant margin trading usually offers cost-plus sale arrangement known as Murabaha.
The Murabaha trading platform was initiated by the NASDAQ Dubai last year alongside Emirates Islamic Bank. The same trading terminologies will be followed by the itqan firm now in the Sharia – compliant margin trading now. Dahlawi added to the reporters that “itqan is also trying to launch an education focused private equity fund and will file for approval with the Saudi regulator by the end of this month”. Thus itqan has planned for both sharia – compliant brokerage arm as a joint venture with Bahrain’s Al Baraka Banking group and a $200 million education focused private equity fund, which will get its approval within this month end.
The education focused private equity fund has a target size of 750 million riyals which is again $200 million and it is mentioned that the company will be focusing on developing a series of Greenfield projects in the Arab kingdom. The company is soon expected to be launched in Arab kingdom. The plans for the venture are at full fledge and are yet to get approved. Education equity fund will get approved this month and the sharia-compliant may take few more months experts told.