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DUBAI, March 27 (Reuters) - Dubai-based investment bank Arqaam Capital is launching a globally focused hedge fund, it said on Monday, becoming one of only a handful of local firms to offer such a product.
Although Dubai has been growing rapidly as a banking centre, the local fund management industry has largely confined itself to traditional equity and fixed income funds which focus on the Middle East region.
Areski Iberrakene, who will manage the new Cayman Islands-domiciled, British-regulated fund from London, said Arqaam was growing and wanted to diversify beyond the region.
The fund has the capacity to grow gradually to around $2 billion in size, with initial clients including funds of funds, rich individuals and offices managing money for wealthy families, Iberrakene said. Pension and sovereign wealth funds may join later.
Iberrakene previously founded his own firm, Areski Capital, which merged with Arqaam; former Areski employees will operate the new fund. He was global co-head of equity and credit derivatives at Dresdner Kleinwort before that investment bank was taken over in 2009. (Reporting by Andrew Torchia; Editing by Ruth Pitchford)