Dubai’s Binghatti announced on Monday the launch of an asset management firm that aims to manage approximately $1 billion in Shariah-compliant private credit and real estate investments. This initiative is designed to diversify the company’s portfolio and broaden access to alternative capital.

The new entity, Binghatti Capital, will operate from the Dubai International Financial Centre (DIFC) and has received regulatory approval to work exclusively with professional clients, as stated by the developer.

Katralnada Binghatti, the Executive Director of Binghatti Capital, emphasized that the establishment of this asset management arm is a strategic move to strengthen Binghatti Holding’s investment presence and improve access to alternative funding.

Binghatti Capital’s real estate strategy will involve acquiring and selling off-plan residential properties, along with the development and sale of residential projects.

In addition, the firm’s private credit strategy will focus on supply chain financing within the real estate sector, which has seen significant growth in Dubai due to extensive infrastructure spending and favorable income tax policies that have attracted numerous international investors.

Other asset managers in the Gulf region, such as Amwal Capital Partners, have also moved into the private credit arena, which typically involves non-bank lending, including direct loans to mid-sized companies, real estate developers, or asset-backed borrowers.