Kuwait-based Islamic finance house The International Investor (TII) has finalised a franchise agreement with The Gulf Bank under which the Kuwaiti bank will market TII's investment products to its clients.

The Gulf Bank is offering an Islamic portfolio investment service, Al- Deema Islamic Investment Services, which comprises five portfolios built from nine Islamic investment funds developed and managed by TII. Two of the portfolios offer short-term murabaha investment, two offer equity investment and one invests in a mixture of murabaha, leasing and other income-generating assets.

Under the terms of the franchise agreement, The Gulf Bank has the sole rights to distribute Al-Deema in the Kuwaiti market. TII is currently holding discussions with organisations in Saudi Arabia, Bahrain and the UAE through which it hopes to launch Al-Deema in those markets.

It is also seeking a major financial institution in London that will market the product in the UK, where TII believes there is a growing demand for Islamic investment opportunities.

TII says the franchise agreements will enable it to reach the retail market, to which it has not had access in the past. They will also enable retail investors to participate in a type of fund from which they have effectively been excluded.

A spokesman for TII said: 'Al-Deema is the first of its kind because, with a minimum investment requirement of $6,000, it offers an opportunity for small investors. In the past, this type of portfolio has been closed to such investors due to a high minimum investment requirement.'