Dubai Shariah Asset Management was formed
to create Shari’ah-compliant alternative investments.

December 5, 2009

Dubai Shariah Asset Management was formed to create Shari’ah-compliant alternative investments. Robin Amlôt spoke to founding partners Ahmed Bin Sulayem, Executive Chairman of Dubai Multi Commodities Centre Authority, and Eric Meyer, Chairman and Chief Executive Officer of Shariah Capital

When the Dubai Multi Commodities Centre Authority (DMCCA) announced its partnership with Shariah Capital last year to build commodity-focused, Shari’ah-compliant alternative investments, there was no shortage of challenges. As their partnership, Dubai Shariah Asset Management (DSAM), overcame one obstacle after another - in the course of the worst global economic meltdown since the 1930s - few expected the extraordinary results of the DSAM Kauthar funds this year.

In fact, two of the DSAM Kauthar funds, the Gold Fund, up over 60 per cent year-to-date (YTD), and the Global Resources & Mining Fund, up over 50 per cent YTD, are the top performers this year in the Bloomberg Active Index for Islamic Funds, as well as in other worldwide rankings. The DSAM Kauthar Commodity Fund is claiming top billing over all commodity fund-of-funds with a return of over 30 per cent so far this year. Did you have any idea your funds would do so well so quickly?

Bin Sulayem: Our objective was to identify the world’s very best commodity managers and then convince them to manage a Shari’ah-compliant fund for us. We knew that if we successfully enlisted experienced managers with sound investment strategies, they would deliver competitive performance over time. We did not expect that they would lead all Islamic funds this year with record gains. Dubai Shariah Asset Management was formed to create Shari’ah-compliant alternative investments. Robin Amlôt spoke to founding partners Ahmed Bin Sulayem, Executive Chairman of Dubai Multi Commodities Centre Authority, and Eric Meyer, Chairman and Chief Executive Officer of Shariah Capital

When the Dubai Multi Commodities Centre Authority (DMCCA) announced its partnership with Shariah Capital last year to build commodity-focused, Shari’ah-compliant alternative investments, there was no shortage of challenges. As their partnership, Dubai Shariah Asset Management (DSAM), overcame one obstacle after another - in the course of the worst global economic meltdown since the 1930s - few expected the extraordinary results of the DSAM Kauthar funds this year.

In fact, two of the DSAM Kauthar funds, the Gold Fund, up over 60 per cent year-to-date (YTD), and the Global Resources & Mining Fund, up over 50 per cent YTD, are the top performers this year in the Bloomberg Active Index for Islamic Funds, as well as in other worldwide rankings. The DSAM Kauthar Commodity Fund is claiming top billing over all commodity fund-of-funds with a return of over 30 per cent so far this year. Did you have any idea your funds would do so well so quickly?

Bin Sulayem: Our objective was to identify the world’s very best commodity managers and then convince them to manage a Shari’ah-compliant fund for us. We knew that if we successfully enlisted experienced managers with sound investment strategies, they would deliver competitive performance over time. We did not expect that they would lead all Islamic funds this year with record gains.

Dubai World