Islamic hedge fund to meet Shari'ah law

The launch of the world's first Islamic hedge fund will widen the investor base for alternative investments. A Saudi bank and a US company are working on the product, which could launch within six months, targeting a client base from the Middle East.

There has been demand in the Islamic world for a hedge fund-type vehicle for some time. The key issue is structuring it to fit with Shari'ah law, which prohibits shorting, according to Rushdi Siddiqui, director, Islamic group business development,