Dubai’s Gulfmena Alternative Investments has launched a hedge fund focusing on the Middle East and North Africa that it plans to market globally and to sovereign wealth funds.

The fund will be launched at $20m and will be managed by Haissam Arabi, chief executive officer of Gulfmena, and former manager of Shuaa Capital’s Arab Gateway Fund between 2001 and 2008.

The fund will target returns of 15 per cent and aims to tap into what Gulfmena regards as the gradual return of investor demand. “While everyone would like to take advantage of the recovery story and existing price distortions in the short term, investors remain somewhat sceptical over long-term prospects,” says Arabi.

Shares in the fund will be offered through a private placement.