The Center DMCC to build on the record of success achieved by commodity funds Shariah-compliant within the initiatives and activities of many aimed at strengthening its position on the map of the Gaza Islamic economy and the face of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister and Ruler of Dubai developed as sectors Home to the economy of the Emirate of Dubai in a way that enhances its position as the capital of Islamic economics. , Prompting Ahmed bin Salem, Executive Director of the first of the Dubai Multi Commodities to describe a real jewel adorn the crown of the Dubai Multi Commodities.
In this context, reported data center DMCC that funds recorded gains record since its launch, it is well made «funds Dubai Shariah Asset Management Islamic - Kawtar of goods», gains standard which confirms the high efficiency of the strategy investment pursued by fund managers, and plans innovative product development.
And managed commodity funds compliant with Islamic law in the registration rates excellent performance during a brief period of time on the launch, which dates back to the Center was able to attract the best asset management experts in the world.
Through their identification at the beginning of it, and then convince them to take over the task of managing funds goods Shariah-compliant, it would succeed in preparing the list two directors experienced remarkable and wide in the field of strategies prudent and coherent, that enhanced the ability of funds to improve their performance is competitive, this in time in which moving company «Dubai Shariah Asset Management) forward in providing support to their counterparts from managers who want to be guided by the provisions of the Islamic Sharia, where became team managers now has the formula for success.
Commented Ahmed Bin Sulayem on this outstanding performance, saying: «We are in the power center of Dubai Multi Commodities, are committed to supporting the expansion and prosperity Islamic financial services industry.
Therefore, the funds Kausar innovative represent the future of this sector, which is growing rapidly, and are well aware that these products were launched relatively new, during the phase of the global economic downturn, and that investors are now more conservative in their investment approach. Therefore, we will continue to focus on enhancing the awareness in the market, and to draw the attention of investors about the outstanding performance of these funds, and to highlight the long-term attractiveness.
It is worth mentioning that the center of the Dubai Multi Commodities established «company Dubai Multi Commodities Asset Management (DCAM)» to the development and innovation investment products competent trade in goods in the UAE and other markets, a company registered licensed by the Bank of the UAE Central Bank.
The «Centre DMCC» managing a group of investment products competent trade in goods and Shariah-compliant, through a joint venture between the «company Dubai Multi Commodities Asset Management» and «Shariah Capital», a private company based in the United States-based her.
The «Dubai Shariah Asset Management (DSAM)», owned by 51% for «company Dubai Multi Commodities Asset Management (DCAM)» and 49% of the company «Shariah Capital» and take of the Cayman Islands-based, management and development of investment products compatible with the provisions of Sharia and specializes in trading commodities, and are these products with great interest by institutions and major investors who have aspirations beyond the borders of traditional investment and seek to contribute to the trade in goods markets, which is currently witnessing a boom.
Speaking Ahmed bin Sulayem for site Islamic funds in the strategy of the Dubai Multi Commodities said: The mission of the Dubai Multi Commodities to pursue initiatives that will contribute to strengthening Dubai's position as a global trading, and concentrated effort Asset Management Center to devise investment strategies focused on commodities.
Hence, we've launched funds Dubai Shariah Asset Management (Islamic Kausar of goods) in the part of our drive to acquire capabilities in the field of asset management, and therefore, we are committed to the long-term work on the growth of this area of business.
He continued by saying: occupy the emirate of Dubai leading position and outstanding in the field of Islamic finance, and we always look forward in asset management approach to compatible with the requirements of Islamic law, has been made available to us to participate in the first hedge funds compliant with Islamic law, which has become over time and one of the stories the success of the Dubai Multi Commodities.
Said Ahmed bin Salem said the company «Dubai Shariah Asset Management» working on the launch of investment products commodity compatible with Islamic law, given the growing strength of the demand for investments that generate excellent returns, and rising investor interest in investing in commodities as a key area to hedge against risk, as a result of volatility global markets and decline in currency exchange rates.
He added Ahmed bin Salem another reason to distinguish the performance of commodity funds Islamic, a private follow style deep discipline in the conduct of research and stock selection, and explained this factor, saying: supports sharia ability of managers to accomplish the tasks entrusted to them, as it is to be to adopt the methodology proven its integrity and authenticity In stock selection, and then, our funds a huge success achieved as a result of choosing managers have the ability to check for stocks.
He continued: Keep in mind, that our controlled legitimacy required us to reserve the account separately at Barclays Capital, the investment arm of Barclays Bank, and to ensure full compatibility with the requirements of legality, and scientists forensic examination and audit every transaction, which ensures us this high level transparency to identify the transaction is religiously sanctioned, before completion, it is difficult to find this protective belt of transparency in conventional accounts.
On his part, said Malcolm Wall Morris, CEO of «Centre Authority DMCC»: contributed outstanding performance for (Fund Kausar gold), and gains extraordinary record (Kausar of global resources and mining) and (Kausar Energy), to ensure that rank high with on global indicators.
This has been developed unique investment products and are compatible with the provisions of Islamic law, specifically to meet the needs of investors in the region, while attracting the attention of traditional institutional investors. Given the remarkable performance over the past year, we are confident of our ability to expand and diversify our customer base.
Prosperous future prospects
The stems of this strong faith ability Islamic hedge funds to achieve more and prosperity in the coming years, from floor replete with huge potential for the growth of Islamic finance in general, as predicting a recent report to the Foundation «Oliver Wyman» Management Consulting to continue to Islamic banking institutions.
It is the largest Islamic finance market, strong annual growth to reach $ 1.6 trillion dollars, while revenue will the $ 120 billion market, which recorded an increase of 150% compared with 2007.
When it was announced the establishment of relations post between the Dubai Multi Commodities and the company «Shariah Capital» aimed at developing investment products backed by commodities and compatible with Islamic Sharia, were not the arena free of challenges, what can the company «Dubai Shariah Asset Management» to overcome a obstacles, there is again another obstacle, did not occur to many people during times of global financial crisis, to achieve the company «Dubai Shariah Asset Management results exceed expectations.
In fact, the fund Kausar Gold and Kawtar of global resources and mining, of the best commodity funds performance among hedge funds in the world, Pthakaiqama significant gains included two mattresses very advanced on the global indicators, as have grown at high rates, which contributed to fill the funds rank high on the Bloomberg index for Islamic funds, the fund is Dubai Shariah Asset Management (Islamic Kawtar of goods) of the best performing commodity funds among hedge funds in the world.
Kawtar Fund for Commodities
The fund Dubai Shariah Asset Management (Kawtar of global resources and mining) is the first fund of its kind in line with Islamic law, and in a series of funds offered by the company «Dubai Shariah Asset Management.
A joint venture between Dubai Asset Management, located in the DMCC and the company «Shariah Capital», and invested the Dubai Multi Commodities initially about $ 50 million, and allows the fund to investors opportunities to invest in companies operating in the field of mineral resources and mining.
The Fund invests Kawtar of mineral resources and mining exclusively in funds of the Fund BlackRock global resources and mining, and is also a fund «platform Net Trust» and managed by fund «BlackRock to manage global resources and mining», and manages platform Net Trust separate accounts at Barclays Capital and reflect the revenue performance of the accounts of the Fund «BlackRock to manage global resources and mining at Barclays Capital after deducting all fees, including fees related to investment management.
The Investment Manager seeks to fund investing primarily in quoted shares are undervalued, and looks forward to market conditions that tend to respond excessively to the changes on the horizon of the companies resulting from change the basic components of an industry or change factors relevant to the performance of these companies.
The types of versions that invests Fund «BlackRock to manage global resources and mining», those issued by companies operating in the exploration, development and production of energy resources, as well as metals and mineral resources, including versions of the companies operating in the field of transport and distribution of natural resource products and energy.
Based on these expectations, as far as Eric Meyer, Chairman and CEO of Shariah Capital that the Islamic alternative investment market size will reach $ 160 billion in just three years, if acquired 10% of the total Islamic finance market.
Diversify its customer base
He explained this point, saying: change directions investors, had to be that long change hedge funds themselves, and become more understanding and awareness of the issue of diversification of the customer base, and through attracting new customers to the chip product markets new investment in order to ensure the same elements of sustainable growth for its business .
Thus, offering funds Dubai Shariah Asset Management (Islamic Kawtar of goods) model elaborate shows what can be provided by hedge funds efficient for investors wishing to invest in investment products Islamic, they represent equivalent and the equivalent of hedge funds, and so without sacrificing returns.
And Eric Meyer attributed the reasons commodity funds outperformed to being the advantage of being compatible with the requirements of Islamic law, and explain this point by saying: always touched to our ears words warn us that you follow the guidelines legitimacy hampers performance.
As well as it would be in unsustainable attract the best team in the Islamic fund management, but we were convinced ideas to the contrary completely, and showed fund performance Dubai Shariah Asset Management (Islamic Kausar) that compatibility with the requirements of Islamic law involves a positive impact huge fund performance , but the form of this agreement in itself is one of the reasons characterize the performance of commodity funds.
Said Meyer: I have demonstrated hedge funds Shariah-compliant because they can not succeed in the competition than the traditional, and we are working closely with traditional financial institutions and Islamic alike wishing to obtain the possibility of access to investment products compatible with Islamic law.
And monitoring Eric Meyer another reason for this performance, which is following the fund managers models coherent and prudent in direct business, explaining that these models are based on deep analysis of macroeconomic trends prevailing in each industry separately, based on a study the basic components, is determined price expectations on term term for goods supportive of the funds, and then, be able to develop models for revenue, based on the strong relationships and document with the administrative divisions of the company.
Continued Eric Meyer explained the strategies used in asset management, saying: If we examine the investment portfolios of our funds, we will find that it is carrying the sale and purchase of shares of companies compliant with Islamic Sharia, nor undertake other operations, such as those relating to trade in derivatives and futures and options, as examines jurists Sharia all aspects and dimensions of investment products.
Thus, to the success of the investment portfolio on the ability of managers to pick stocks top returns, and impose Islamic rules on managers to focus on stock selection based on fundamental analysis of the ingredients, and distance themselves away from the complexities associated with products, derivatives and options, and this focus that contributes to improving performance.
Speaking Eric Meyer on the impact of the global financial crisis on commodity funds Islamic saying: after the eruption the global financial crisis in 2008, Sauer investors concerns regarding the allocation of their money in any new investments, including hedge funds, which was the subject of an understanding of our own, but When briefed on our results, they looked seriously at the role played by our strategies to improve the performance of investment portfolio.
Shariah-compliant instruments
The shot «Dubai Multi Commodities», one of the strategic initiatives of the Government of Dubai, in May 2010 another $ 20 million toward the instruments worth U.S. $ 200 million, which was released in May 2005 for a period of five years, and according to the schedule.
And saw version launched by the Center for DMCC high turnout of financial institutions in the Middle East, Asia and Europe, due to the strength of the foundations of long-term business pursued by the center. And included a unique feature of this innovative financial instrument and compliant with Islamic law, payments in cash in U.S. dollars or in the form of gold bullion.
On this occasion, said Ahmed bin Sulayem, Executive Chairman «Dubai Multi Commodities»: «Unlike large turnout witnessed issuance of the Dubai Multi Commodities investor confidence in the center, and despite severe global economic conditions, fluctuations continuous witnessed by global commodity markets then , but that the center was able to repay all its obligations in accordance with the schedule, which highlighted the strength of the financial foundations of the center, unlike Dubai's position as a global hub for trade in goods.
This has hired Dubai Multi Commodities revenues instruments to finance construction operations in the commercial towers for companies concerned goods international, within the free zone to JLT multiple uses, which extends over an area of 200 hectares, managed by «Dubai Multi Commodities».
, Said Malcolm Wall Morris, CEO of «Dubai Multi Commodities»: «been issued such instruments at a time when (center DMCC) and the Free Zone (JLT) projects are recent, but recognizable thanks to our vision ambitious to provide services value-added and innovative features of the supply chain of goods, and the development of the flow of commodities trade through Dubai.
This vision has become today's reality, where are the (JLT) has more than 64 towers is home to over 5,700 companies and live and work in the more than 50 thousand people.
In conclusion, predicted Ahmed Bin Sulayem to achieve commodity funds Islamic greater success, and explain the reasons for this, saying: Although we are still at the stage of building log our funds Islamic, but we are having a permanent and regular discussions with several institutions in the Gulf region that are compatible strategies Islamic managing their investment portfolios with funds Kausar and we expect that our funds are part of the investment products that enjoy the popularity, with the reallocation of funds among asset classes during the current year.
Platform «Net Trust promotes transparency and control
Occur Ahmed bin Sulayem platform Net Trust saying: after we study in depth the platform Net Trust, we realized quickly that the platform offers to the Dubai Multi Commodities strong framework and coherent, in which you can create investment products compatible with Islamic law, and we have launched several funds, and established company «Dubai Shariah Asset Management, and managers feel happy and satisfied returns achieved, which is the product of the merger between the strong performance of the managers of the side benefits of the platform 'Net Trust' on the other.
He continued: with international recognition managers company «Dubai Shariah Asset Management», I think the company has demonstrated now as jewel true that adorn the crown center DMCC, however consolidation company to its as a leading player and leader in the industry of Islamic hedge funds, the time has come To maximize the benefit from their success, by expanding the size and scope of work.
Said Eric Meyer, Chairman and CEO of Shariah Capital: It is designed investment program «Net Trust» to ensure transparency through the separation of responsibilities funds, and to avoid conflict of interest, as well as the involvement of service providers independent, like the company hedge fund trader x partner accounts.
The company Walkers (partner management) and Barclays Capital (the main broker), and then, this is not available levels of transparency and control professional in any other platform for asset management, which contributed to the reduction of investor concerns about hedge funds.
He said: The Platform initiative «Net Trust» product post strategy between Barclays Capital Inc. Shariah Capital, has been established to be a platform first in the world, which manages assets compliant with Islamic law, they are pricing mechanism competitive with senior service providers who allows managers possibility providing investment products Shariah-compliant alternative for those offered by conventional funds.
Murabaha commodity
Won Murabaha used in platform «de GMC C Trajd Flo» e, the fatwa approves compatibility with the provisions of Sharia, and issued the mark Dr. Hussain Hamid Hassan, who is one of the most prominent figures in the field of Islamic banking and contributed to the launch of Dubai Islamic Bank, which is one of the first banking institutions in the world.
Deposit contracts effective tools for risk management
Ahmed bin Sulayem, Chief Executive Officer of the Dubai Multi Commodities the importance approach innovation in the design of investment products compatible with Islamic law, and evidenced by the adoption of decades deposit in the development of effective tools for risk management, explaining: there widespread acceptance in the financial community Islamic to conventional methods to hedge, and short-selling, in particular, are simply not acceptable due to the use of elements incompatible with the principles and teachings of Islamic Sharia.
But he added: With that, we worked with experts Sharia over the years, has been able to Eric Meyer, CEO of Shariaa Capital and his team to develop an Islamic alternative to short-selling, such as contracts deposit with providing effective tools for risk management and hedging, was approved by the Council of jurists Organization Islamic Conference such a method which has become widely accepted by the range of Islamic financial institutions in various parts of the world.
