Dubai’s Mashreq Bank and the real estate company Arady Properties have formed a partnership to launch the first Qualified Investor Real Estate Fund in the UAE, Arabian Business reported.

The fund, which is going to be Sharia’h compliant, will be registered in the Dubai International Financial Centre (DIFC) and aim to acquire “select, income generating, diversified assets across the GCC with a focus on the UAE,” a statement said.

The fund will be structured as a 6 year, close-ended vehicle and will be regulated by the DFSA, which will deploy AED 1.1 billion ($ 300 million) of equity paired with debt, in order to acquire assets with strong yielding potential, the statement added.

The partnership was signed by Head of Corporate Investment Banking Group at Mashreq, v and Chairman of Arady Properties, Ali Hamad Lakhraim Al Zaabi.

“This fund will add a significant amount of product and investment diversity to the region’s Real Estate and Asset Management platforms. This is further evidence of Mashreq’s market leading capabilities in the area of Real Estate Finance & Advisory,” Iossifidis said.

“Arady Properties is delighted to partner with Mashreq in this pioneering initiative and is looking forward to contributing our industry expertise, market knowledge and extensive investment experience,” Al Zaabi said.