Mashreq Capital to set up $ 100m Islamic equity fund

Updated 25 April 2013

Mashreq Capital to set up $ 100m Islamic equity fund

DUBAI: Dubai-based Mashreq Capital plans to set up an Islamic equity fund of up to $ 100 million in the third quarter of this year to invest in stocks across the Gulf region, given lower returns in the bond market, the company’s chief executive said.
“We think there is demand in high-dividend sharia equities,” particularly with interest rates currently very low, Abdul Kadir Hussain said at Zawya’s MENA Asset Management conference in Dubai.
“Equities have very attractive yields in this region,” he added.
The investment unit of Mashreq bank hopes to raise between $ 75 million and $ 100 million for the fund, and will seed it with a $ 20 million investment from the bank.
Hussain said the fund would be Mashreq Capital’s fourth as it now manages two fixed income funds and one conventional equity fund, with a total of $ 800 million of assets under management.


Saudi finance minister reassures public on taxes

Updated 40 sec ago

Saudi finance minister reassures public on taxes

RIYADH: Saudi finance minister Mohammed Al-Jadaan pledged that there would be no more taxes or fees introduced in the Kingdom until the social and economic impact of such a move had been fully reviewed.

He was speaking at the 2020 Budget Meeting Sessions, organized by the Ministry of Finance and held in Riyadh on Tuesday, where a number of ministers and senior officials gathered following the publication of the budget on Monday evening.

“There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully, especially in terms of economic competitiveness,” said Al-Jadaan.

The government expects to generate about SR203 billion in taxes this year - more than 20.5 percent higher than the previous year and more than 10 percent higher than the expected budget for this year. 

Most of that increase has come from taxes on goods and services which rose substantially as a result of the improvement in economic activity over the year.

The reassurances from the minister come as the Saudi budget deficit is estimated to widen to about SR187 billion, next year, or about 6.4 percent of GDP.