Manama-based Gulf Finance House (GFH) and the Islamic Corporation for the Development of the Private Sector (ICD) have set up a $50 million Islamic investment fund to invest in the region's IT and related sectors.

The Injazat technology fund will be established in Bahrain, with an expected life of five years. It plans to invest in small to mediumsized technology companies in the IT, telecommunications, internet and IT consulting sectors.

GFH, an Islamic investment bank, and ICD, part of Jeddah-based Islamic Development Bank, will each invest $12.5 million.

'The remaining amount will be from individual and institutional investors, with a minimum investment of $100,000 and $250,000 each respectively, ' says a GFH official.

GFH and ICD have appointed the Dubaibased investment banking and corporate advisory services company Communications Development Corporation, the region's affiliate of the US' Communications Equity Associates, as technical adviser for the fund.

'A market study reveals that a potential exists in this sector, ' says GFH chief executive officer Esam Janahi. 'The exit strategy will include targeting Nasdaq and other regional markets for listing the acquired companies.'

'The fund has plans to also operate from the Dubai Internet City [DIC], once application formalities are completed, ' the GFH official says. 'We are looking to soon open an office at the DIC.'

DIC is scheduled to open in October.