Two Bahrain-based offshore banks, TAIB Bank and United Gulf Bank (UGB), are understood to be planning to launch new equities funds.

TAIB is to establish a fund that will invest in shares listed on the stock markets of the GCC. The open-ended TAIB Gulf Fund is expected to be launched in June and will be marketed in the GCC states. Banking sources say the fund is aiming to raise about $20 million in the initial offer period.

UGB's mutual fund is expected to focus on Bahraini equities and may be launched by the end of 1998, sources close to the bank say. The fund will form part of UGB's plan to increase it's involvement in the Bahrain Stock Exchange (BSE). The bank is also considering establishing securities trading facilities, the sources say.

The news follows the 22 April launch of a closed-end mutual fund by Bahrain's Securities and Investment Company (SICO). The SICO selected securities fund will invest primarily in equities listed on the BSE.