Dubai Opens Its Shariah Hedge Fund to Investors

* username: rupertbu

Dubai is opening up its inaugural hedge fund to investors after an index-beating debut.

The Middle East emirate's first fund of funds, which was launched at the beginning of 2009, beat comparable indexes by posting a 41% return last year. The fund, up slightly more than 1% through March 28, is still outperforming benchmarks this year.

Fund operator Dubai Shariah Asset Management, or DSAM, sees this as proof that a hedge fund based on Islamic law, or shariah, can provide similar or better returns than conventional hedge funds.