NCB Capital, a Saudi Arabia-based wealth advisory firm, has launched a new Shariah-compliant open-ended equity fund called, AlAhli Global Growth and Income Fund.

The fund, which is denominated in US dollars, targets to pay dividends twice a year during the months of June and December.

The fund will invest in shares of Shariah compliant companies with potential for growth to achieve long term financial goals by investing in equities of dividend-paying companies listed in developed and emerging markets around the world.

Tariq Linjawi, head of wealth management at NCB Capital, said: "At NCB Capital, we believe that dividend-paying stocks play an increasingly important role in an investment portfolio, as dividends can provide a significant percentage of total return over time.

"Companies that pay regular dividends tend to enjoy solid streams of cash flow and are generally well-managed high quality firms. In today’s global low interest environment, dividends tend to provide on the long-term higher income than many fixed-income investments and a growth rate that is potentially faster than the rate of inflation in many markets around the world," he added.