Rasmala Investment Bank will launch a Sharia compliant fund, as European Islamic Investment Bank (EIIB), which owns a strategically controlling stake, plans to significantly expand Rasmala's asset management business.

The Rasmala Global Sukuk Fund (RGSF) is a Sharia compliant fund, will be dynamically managed to provide low risk, well diversified capital stability.

The open-ended, dollar denominated fund expects to make semi-annual distributions of accumulated profit in July and January of each year. The Fund will be seeded with a $25 million cash investment by EIIB.

Eric Swats, head of Rasmala Asset Management, said: "The market for conservative and well-managed Sharia compliant investment products remains underserved and underdeveloped. With the launch of this fund we hope to contribute to the development of this important market segment. The Fund is an attractive alternative to low-yielding cash deposits, providing a regular annual distribution and the potential for capital appreciation based on active portfolio management."