Russia: Al Shams Capital is setting up first CIS focused Shariah compliant PE fund

June 6, 2010

Al Shams Capital (Moscow), an investment financial company specializing in Islamic investments and finance, Lux Global Trust Services, a Luxembourg-based independent advisory and fund services firm and Theisen Law, a leading Luxembourg-based law firm, signed an agreement during the Moscow Forum for Islamic Investments & Finance in the Russian capital on 27th of May 2010.

Under the agreement the three parties will cooperate towards the establishment of an Islamic private equity fund that will focus on investing in Halal-related business activities and opportunities in Russia and the other CIS countries.
The agreement was signed by Dr. Adalet Djabiev, CEO of Al Shams Capital and Advocate Marc Theisen, senior partner Theisen Law, in the presence of HE Mr. Gaston Stronck, Ambassador of Duchy of Luxembourg to the Russian Federation.
The fund will be targeting:
– investments in Islamic financial institutions, including banks, takaful, leasing (Ijara) companies,
– small and medium enterprises (SMEs)
– Halal-food production and distribution
– other Shariah compliant sectors.
The fund which will be based on Islamic ethical investment principles, will effectively be an incubator fund which will invest into the above activities.
The target initial size of the fund is USD 30 ml. by 2011, to reach USD 100 ml. by 2012.
The fund will have an independent Shariah review board which is a prominent Shariah advisory entity.