Algebra Capital and Elaf Bank Launch 'The Sukuk Fund'

Dubai, UAE - 7th of September 2008. Algebra CapitalAlgebra CapitalAlgebra Capital Limited
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and Elaf Bank have announced the launch of The Sukuk Fund today (the "Fund"). Targeting an initial size of USD 100 million and returns above 8%, the open ended fund seeded by Elaf Bank and managed by Algebra CapitalAlgebra CapitalAlgebra Capital Limited
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will provide exposure to Shari'a compliant securities issued in the MENASIA region. Elaf Bank will also serve in an advisory capacity on the Fund's Investment Committee.


"We are very happy to be launching and managing The Sukuk Fund, and on working with Elaf Bank. This will be the second fund managed by Algebra CapitalAlgebra CapitalAlgebra Capital Limited
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in its fixed income line of business," commented Ziad Makkawi, Founder & CEO of Algebra CapitalAlgebra CapitalAlgebra Capital Limited
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. "The Sukuk Fund reflects both our constructive view of the region's fixed income markets; as well as the importance of the Shari'a compliant space to us."


Dr. Jamil Jaroudi, CEO of Elaf Bank, added that "The Sukuk Fund is an attractive vehicle to gain exposure to and benefit from the rapidly evolving and attractive Sukuk asset class capitalizing on Elaf Bank's access to and expertise in Islamic finance and benefiting from Algebra CapitalAlgebra CapitalAlgebra Capital Limited
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's investment process and extensive MENA research capability".


"The global Sukuk market now exceeds USD $100bn and the MENA region's contribution to it is expected to continue," commented Mohieddine Kronfol, Managing Director, Algebra CapitalAlgebra CapitalAlgebra Capital Limited
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and the Portfolio Manager for the fund. "MENA Sukuk now represents 33% of the global Sukuk market and a little more than 33% of MENA corporate fixed income issues. Strong economic fundamentals, large infrastructure projects and increasing capital market activity support and advance prospects for the Sukuk market in our region".


"By launching The Sukuk Fund, we hope that it will be considered by investors as a unique financial product providing diversification for their portfolios through the addition of Shari'a compliant income generating issues such as Sukuk." said Ahmad Tayara, General Manager for Investment Banking at Elaf Bank.


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About Algebra CapitalAlgebra CapitalAlgebra Capital Limited
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:
Algebra CapitalAlgebra CapitalAlgebra Capital Limited
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operates out of the DIFC and is regulated as a financial services provider by the DFSA. A leading emerging markets asset management firm specializing in the Middle East/North Africa (MENA) region, Algebra CapitalAlgebra CapitalAlgebra Capital Limited
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manages assets in private and public markets across all asset classes. Services are packaged as fund solutions, discretionary mandates or structured products. Clients are a mix of institutional investors and high net worth individuals. Particular attention and resources will be dedicated to attracting international capital flows to our target markets, the MENA and emerging Asia regions (MENASIA). Algebra CapitalAlgebra CapitalAlgebra Capital Limited
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claims the longest combined track record in the Middle East.


About Elaf Bank:
Elaf Bank is a Bahrain-based, Islamic Bank regulated by the Central Bank of Bahrain and operating with an investment banking license ("Elaf" or the "Bank"). Elaf was established in June 2007 with a paid-in capital of USD 200 and an authorized capital of USD 500 million.


Elaf offers a range of investment banking services to corporate clients, institutional investors, and high net worth individuals encompassing advisory services focused on the debt & equity capital markets, as well as asset management services. The Bank's primary focus is to originate, structure, and offer financial products that will strengthen the current state of the primary and secondary market for Sukuk. Furthermore, Elaf intends to carve itself a niche by actively participating in the equity and Islamic financing capital market as a market maker for Sukuk in the primary and secondary capital markets.