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22 April 2024

DIB euro notes focus on infrastructure

By Mohamad Al Kady



Dubai Islamic Bank (DIB) yesterday launched its first euro-based investment products.


The two Shariah-compliant products – 10-year non-protected capital certificates and five-year protected capital notes – are benchmarked to the DWS Invest New Resources Fund, which is managed by Deutsche Bank. The minimum investment in each is €10,000.


The fund invests in water infrastructure, agriculture and alternative energy.


Nivid Ahmed, Head of Investments at DIB, said the launch marked a further step in its growing association with Deutsche Bank.


“We have been working together for two years and jointly offer 15 Shariah-compliant investment opportunities.


DIB’s strategy is to not only offer Shariah-compliant products but to offer the right investment solutions for the right customers.


This is the first time the euro has been used as a dealing currency by DIB.


“Around 80 per cent of the bank’s wealth funds are dollar-based, so the introduction of euro-based products will help us diversify our investment products for our customers.”

Ahmed said the total assets of DIB’s investment funds had reached Dh20 billion and the bank was expanding and diversifying its products to attract more investors.


“The new products reflect DIB’s commitment to innovation and socially oriented investments as they give exposure to basic resources, which are coming under increasing strain.


“Demand for potable water is expected to triple over the next 30 years.


The need for alternative energy sources continues to grow.


With the world population increasing rapidly there is growing demand for farmland, so these sectors will attract more investors.”


Nicolas Huber, Director of DWS Invest New Resources, said the fund was established two years ago and now manages €5bn (Dh21.5bn).


“The fund’s scope of business focuses on long-term investments in innovative resources.” he added.


“We invest in three categories of companies working in water resources, food and agricultural products and alternative energy.”


Huber said the world’s population was expected to reach nine billion by 2050 and demand for resources would be high.


“Water, food and energy are essential requirements for people to survive.


We are investing in companies working in water infrastructure and industry, food production and farmland and the exploitation of wind and solar energy.


“The fund’s portfolio is balanced between the three areas but is flexible – we can alter the proportions according to market requirements.


“We invest in listed companies around the world with 50 per cent in European equities, 30 per cent in US markets and the rest in global markets, particularly Japan.


There has been uncertainty in equity markets during the last six weeks, but this is a short-term situation, while the fund is targeting long-term investments.”