The fund aims to achieve higher profit return than comparative Shariah-compliant bank deposits, predominantly from a diversified portfolio of Shariah-compliant money market instruments.

"The fund is one of the first of its kind globally and will look to access the growing range of Islamic cash or near cash investments. It will also seek to benefit from the yield pick-up in dollar-pegged currencies and the current cost of funding for corporates and banks," said Deon Vernooy, head of asset management at Emirates NBD

"As Islamic investment draws increasing interest from large financial institutions worldwide, Emirates NBD continues to stay ahead of the curve by developing and managing innovative and sophisticated investment vehicles that adhere to the highest standards of Shariah-compliance," he added.

The fund provides investors diversification from traditional equity and real estate investments and can form part of an investor's portfolio irrespective of their investment horizon. Further, the fund can also be used as a parking facility during periods of surplus liquidity.

The fund will acquire a diversified portfolio, including but not limited to, Islamic deposits, murabaha, sukuk and international trade contracts. Assets will be diversified across a range of durations and liquidity terms in order to optimize potential for higher profit, without unduly increasing volatility or hampering daily liquidity.  Investors may invest at a discounted upfront fee during a special two-week offer period, which will start toward the end of March.

Meanwhile, Dubai Islamic Bank (DIB) said on Monday that it has successfully arranged a multi-purpose financing deal of 790 million dirhams for Kharafi National, a Kuwait-based leading construction group in the Middle East and Africa.

Under the agreement, DIB will cover the banking requirements for Kharafi National's sub-contract with JGC-Tecnimont Joint Venture to construct the Habshan 5 Process Plant, an integrated gas development project for Gasco, in Abu Dhabi. The project, with a value of $ 728 million, aims to increase Abu Dhabi's offshore gas production capacity by 1 billion cubic feet per day.

"We are pleased to announce our deal with Kharafi National," said Ayman Adel Kamal, chief of Real Estate & Contracting Finance at DIB.

Kharafi National is a leading electromechanical contractor in the Gulf and Middle East, and has strong track record of executing large projects in the UAE. The group is one of the biggest Kuwaiti conglomerates with diversified activities.