Tebyan Asset Management, a joint venture between GulfMena Investments (GulfMena) and Qatar First Investment Bank (QFIB), has debuted the first Shariah compliant fund to offer access to the Arab-Indo-China regions.

Although the launch process was started in May of last year, Tebyan  has been awaiting regulation approval and positive market performance before  launching  the product to qualified investors as part of its plan to focus on primary products in 2012.

QFIB has provided the initial seed capital of $10m with co-managers GulfMena and Lion Global together bringing in an additional $5m in the coming months. “We’re testing it out, we’re giving it a chance,” GulfMena CEO Haissam Arabi told Mena FM. “When you put China, the Middle East and India into one category it’s almost like you’re offering a whole new asset class. The idea is to start building a track record to gradual positioning so that, when we do go out in the market in say three months or six months, we can go out with a track record. “

The fund is open ended, allowing investors to buy in at the early stage and promising 15-18% annual returns based on the benchmark Dow Jones Islamic Market CHIME Index.

“Where best to come back and be other than in emerging markets?” Arabi said. He added that Tebyan is “cautiously optimistic” that 2012 will see the return of assets and money to emerging markets.  In the coming year it is set to provide another two or three products covering equities, commodities, gold and sukuk in addition to its wealth management platform. 

 “There might be some gaps within the asset managers and we’re trying to fill in those gaps with primary products,” said Arabi. “The CHIME opportunity being one of them.”