Sharia lenders team up to fund Iraq's promising food sector

Iraqi Islamic Bank for Investment and Development has teamed up with a Bahrain-based Baraka Islamic Bank to develop an investment vehicle that will target Iraq's lucrative and promising food sector. The fund has already acquired interest from Arabian Gulf and European investors, prompting the Iraqi lender to increase the size of the vehicle from US$50 million (Dh183.6m) to $75m. It will provide financial support to an affiliate company of Iraqi Islamic Bank that has a three-year track record of delivering contracts on sugar stockpile to Iraq's ministry of trade.