Al Mal's initial target for the fund is $10m, says Blair Look, managing director for asset management.

The open-ended fund will be registered in Bahrain. It will be denominated in dollars and will offer weekly subscription and redemption. The initial minimum subscription will be $250,000.

The fund’s manager, Tariq Qaqish, says the fund’s investment strategy will be based on fundamental research into 30-40 major quoted firms.

The MENA equity fund is Al Mal's sixth fund. It also plans to launch a real estate fund with a target of $250m and an income fund before the end of 2008.

Al Mal Capital was founded at the end of 2005. Its executive chairman is Naser Nabulsi.