Flemings, the London-based investment bank will launch an open-ended Islamic fund on 9 February that will give Muslim investors the opportunity to invest in international equities in accordance with sharia law.

Flemings will be advised by a specially appointed sharia supervisory board, who will ensure all investments comply with the Islamic code (MEED 27:10:95).

The Luxembourg-listed Oasis fund will be structured as an umbrella fund, under which a range of sub-funds will be developed. The first sub-fund to be launched will invest in international equities, and will target some of the world's largest listed companies. This subfund is expected to raise between $100 million - 150 million in the medium-term. This will be followed by an emerging markets fund.

The minimum initial investment in the international equity fund is $50,000, most of which is expected to come from institutional investors and other Islamic funds in the Gulf and Far East. However, Flemings says other sub-funds may be launched in the future to target the retail investor.

Flemings is also in talks with a major Middle East institution to set up an Arab markets fund, reviving a plan which the investment bank first announced in 1994.

However, the bank says it is at a very early stage of negotiations with the Middle Eastern partner.