Shuaa initiates $118mn real estate fund to offer ‘Citizenship by Investment’

By Rahul Vaimal, Associate Editor
  • Follow author on
Representational Image

The leading investment banking firm in Dubai Shuaa Capital has entered into a partnership with the financial advisory firm Arton Capital to launch a $118 million real estate investment fund for investors looking for a second residency or citizenship program.

The partnership aims to offer a range of investment opportunities which will satisfy the increasing demand by investors who are seeking second residency and citizenship and thus boost foreign direct investment (FDI), Shuaa stated.

The fund targets to receive a return of 20 percent through the acquisition, development and sale of real estate projects to investors. Shuaa has already picked two mixed-use projects in Montenegro for potential investments that can register for the Montenegrin government’s approval, Shuaa said.

“Citizenship by Investment is a competitive global market and the COVID-19 pandemic has only further increased demand as more and more people across the world are now thinking of how to medically, socially and financially secure their future,” stated Mr. Mustafa Kheriba deputy chief executive and head of asset management Head at Shuaa Capital.

The founder and president of Arton Capital, Mr. Armand Arton stated that this new initiative would help governments to enhance foreign direct investment in their country and to improve their economic development.

Investments received through the real estate, industries and special bonds enable the governments to introduce fresh capital for developing infrastructure and tourism, funding regional firms and increasing employment. Countries like Greece, Portugal, Hungary, St. Kitts & Nevis and Grenada have already launched the plan of citizenship by investment schemes.

The financial advisory company has already supported various governments in the world to attract over $4 billion in foreign direct investment through residency and citizenship programs over the past five years.

Following this partnership, Shuaa has secured its position as the leading asset management and investment bank in the region, which has $13 billion in AUM (Assets Under Management) and targets to reach $20 billion.

In October, the company launched a $200 million fund, targeting investments in special situations across Gulf countries.