DUBAI, 22 February 2007 — Al-Futtaim Capital, the investment and development arm of the Al-Futtaim Group, launched yesterday a $500 million real estate development fund. The fund will focus on large-scale urban mixed-use developments in the Middle East and North Africa region.
Al-Futtaim MENA Real Estate Development Fund will be managed by Al-Futtaim Investment Management Limited (AFIM), a DIFC incorporated company wholly-owned by Al-Futtaim Capital. AFIM has recently been authorized to manage investments by the Dubai Financial Services Authority (DFSA). Al-Futtaim Capital will contribute $75 million or 15 percent of the fund’s total value of $500 million.
Omar Al-Futtaim, CEO of the Al-Futtaim Group, said “this move is yet another firm step forward toward Al-Futtaim Group’s increased activity in the financial services arena. Al-Futtaim Group will bring the talent of its experienced real estate team and its proven track record and success to third party investors for the first time.”
Dr. Omar Bin Sulaiman, governor of the DIFC, said “we are pleased to welcome Al-Futtaim Investment Management into the growing DIFC family. We are confident that the benefits of DIFC’s strong regulatory framework and global recognition will enable AFIM to develop and expand its business successfully.”
He added that “AFIM’s inaugural fund demonstrates the DIFC’s suitability as a platform for the growing fund management business. By providing investors with local and international expertise, a secure environment for their assets and a diverse range of financial products, we have laid the foundation for the development of regional wealth.”
Al-Futtaim MENA Real Estate Development Fund will focus on key cities within the MENA region including Abu Dhabi, Casablanca, Algiers and Cairo. The fund will seek to leverage Al-Futtaim Group’s experience in the Dubai Festival City development and to replicate this mixed-use environment elsewhere.