The National Investor the TNI UAE Blue Chip Fund and raises AED200 million in its 1st week of operation

Abu Dhabi – The National Investor, (TNI), the leading UAE investment and merchant banking firm, today announced that it had secured AED200 million from investors for its open ended TNI UAE Blue Chip Fund in the first week of operation.

As Fund Managers, TNI has structured the Fund to capture the capital appreciation within the UAE and GCC equity markets. The Fund provides investors with access to publicly traded stocks of selected, large cap UAE based companies. The TNI UAE BLUE CHIP Fund is composed of approximately 60% UAE traded securities, 20% GCC equities and 20% allocated for Initial Public Offerings (IPOs).

Commenting on the level of investor interest, Dr. Karim El Solh, CEO, The National Investor said: “We are delighted with the response from investors. It reflects their confidence in the market and a belief that the Fund will provide significant dividend returns. The UAE stock market is one of the fastest growing and most promising stock markets in the region and currently offers the prospect of the highest returns in the Middle East and probably the world.

“Of increased significance is the repatriation of GCC and Middle East capital, the continuous introductions of advanced regulations and significant investments in non oil driven sectors, the global economic slowdown and the negative performance of international stock markets,” he continued. The Fund will search for highly liquid investments, allowing monthly redemptions, subject to a lock-up period of one year, and seeks substantial capital gains through investing in successful IPOs and pre-IPO opportunities. Investment returns will be generated through the active management of the Fund. TNI UAE BLUE CHIP will aim to benefit from the increasing demand for existing IPO issues, as well as the strong appetite for new issues. During the initial offering period, the minimum subscription amount has been 500,000 Units which equals AED 5 million. The Fund is oriented towards institutional and sophisticated investors and provides TNI clients with personalized, premier servicing. Local, GCC, expatriates and companies have all responded positively so that the original secured Funds have allowed TNI UAE Blue Chip to be launched at AED 200 million.

“Regional investors are increasingly targeting publicly held companies that provide strong and steady growth prospects, transparency and institutionalized corporate governance. The Fund provides a conduit to those companies,” added Dr. El Solh.

The National Investor will allow investors access to a professional asset management approach backed by a strong research team. Additionally, it will provide a professional portfolio monitoring approach along with extensive investment banking and private equity portfolio management experience within the UAE and other GCC countries.

“The TNI UAE Blue Chip Fund is just one of several high profile Funds that we plan to launch in 2005. We are intent on developing our asset management activities which will support our vision to develop the local and regional capital markets,” Dr El Solh continued.

About the National Investor: The National Investor (TNI) is a leading UAE investment and advisory firm with a distinguished track record in investment banking, private equity, real estate and asset management. The Company is backed by over 80 UAE shareholders who come from the highest echelons of the business and political community. TNI is actively involved in investment banking, private equity, real estate and asset management and is currently ranked as the leading arranger of public share offerings, having lead managed the largest number of public offerings in the UAE to date. For more information, please visit www.nationalinvestor.ae.