France's Societe Generale has raised $53.5 million for a closed-end fund to invest in Arab equities. The fund, which was launched in early October, raised more than the bank's $50 million target, despite the recent downturn in emerging markets in the wake of economic problems in the Far East.

The fund, which is incorporated in Guernsey, will invest mainly in Egypt, Lebanon, Jordan, Oman and Bahrain, buying equities in other Arab countries when regulations permit. It has a life of five years, with an option to extend to seven, and a maximum of 40 per cent of it can be invested in unlisted equities.

The French bank says that much of the money raised from the fund has come from Arab investors who are less worried by problems in emerging markets elsewhere. 'During a period when many financings and funds have been postponed or cancelled, we are delighted by the confidence that investors have shown in us and in the markets where the fund will be investing,' says Christopher Butterwick, sales manager for Societe Generale Emerging Europe Asset Management.

Societe Generale's network in the Middle East includes joint ventures in six countries and offices in five (France, MEED Special Report, 24:10:97).