The firm, which has $1.4 trillion under management, has launched the two funds in conjunction with the opening of its Bahrain office, its first presence in the region.

Nick Smith, head of fund distribution, says that although the funds are Sharia-compliant, Allianz has decided not to include any local stocks.

“There was a feeling that regional investors were probably more interested in diversifying their investments out of the region,” he says.

“We anticipate in the next 12 months that we could launch some new funds, and those may include exposure to local equities," he adds.