Islamic mutual funds attract strong interest

National Commercial Bank has become only the second Saudi Arabian financial services provider to launch a Shariah-compliant mutual fund that will invest in the countries in the Gulf Cooperation Council. The Al-Ahli GCC Trading Equity Fund is an open-ended fund denominated in Saudi riyals with a minimum subscription of SR5,000 ($1,333) and a 1.85% a year management fee.

According to the bank, the fund’s objective is: “To generate long-term capital growth through investing in GCC companies listed in various GCC stock exchanges and which comply with the Shariah criteria for investment.