InvestGB and Investcorp Expand Partnership to Offer Shariah-Compliant Real Estate Investments

Partnership Reaches New Milestone

Gulf Capital Investment Company “InvestGB”, the investment arm of Gulf Bank in Kuwait, has deepened its strategic alliance with global alternative investment manager Investcorp. As of mid-September 2025, they are collaborating to offer shariah-compliant real estate investment opportunities for InvestGB clients. The new offerings will cover resilient property sectors such as light industrial, student housing, among others, especially in select U.S. markets. This move aligns with both firms’ aim to meet demand among investors seeking ethical investment solutions and diversified real estate exposure.

From Inception to Shariah-Focused Real Estate

InvestGB was established in 2023 as a wholly-owned subsidiary of Gulf Bank, offering services in wealth management, asset management, investments, and advisory for high net worth and institutional clients.

Investcorp, founded in 1982, has grown into a major global alternative investment manager, active in real estate, private equity, and other alternative assets. Over the past decades, it has built large portfolios in the U.S., Europe, GCC and elsewhere.

Historically, many partnerships in the region have focused on conventional real estate or broad investment funds. This partnership is differentiated by its explicit shariah-compliant real estate investment focus. It reflects shifts in investor preferences in the Middle East for ethical finance, and the increasing institutionalisation of shariah investment frameworks.

Key Figures & Statistics

InvestGB is a closed Kuwaiti shareholding company with capital of 10 million Kuwaiti Dinars.
Sectors targeted under the partnership: light industrial, student housing and industrial (more broadly) real estate assets in U.S. markets.
Investcorp is among the top-5 largest cross-border buyers of U.S. real estate over the past five years, according to Real Capital Analytics.
Student housing portfolio: around 20,000 beds across approximately 30 investments managed by Investcorp in that sector to date.
Real estate exposure by type: industrial + residential properties make up ~98% of Investcorp’s U.S. real estate portfolio.

Leadership Vision & Strategic Intent

Noorah AlSane, Managing Director of Real Estate Investments at InvestGB, emphasized that the partnership “aligns perfectly with our commitment to providing clients with diversified shariah-compliant investment solutions.”

Mohamed AlSada, Managing Director for Private Wealth – Bahrain & Kuwait Markets at Investcorp, noted:

“This partnership leverages Investcorp’s global investment expertise and proven track record … offers InvestGB and Gulf Bank clients access to our best-in-class real estate investment offerings.”

He also underscored that the shariah-compliant offerings reflect a shared commitment to delivering resilient real estate assets with stable cash flows and long-term demand.

Expert Insight & Market Impact

Financial analysts observe that demand for ethical and shariah-compliant investment solutions is rising in the Gulf, driven by both individual and institutional investors seeking investments that align with religious or social values.

Real estate sectors like industrial (especially light industrial), and student housing tend to offer more resilient income streams and lower volatility compared to some commercial or speculative assets. These sectors are also benefiting from demographic shifts (e.g., growth in student populations) and supply constraints.

By tapping into these sectors, InvestGB and Investcorp can offer clients exposure to assets that historically show steady occupancy, potential for capital appreciation, and inflation-hedging qualities.

There is also a competitive dimension: other GCC asset managers are increasingly launching shariah or ESG-aligned real estate funds, so this partnership positions InvestGB as a stronger player in the shariah-investment real estate domain.

Practical Implications for Stakeholders

For individual investors:

Access to real estate assets in markets they might otherwise not invest in directly.
Ability to invest in shariah-compliant portfolios, matching ethical preferences.
Potential for stable rental income and diversification benefits.

For wealth / asset managers:

A model for creating partnership structures to tap into specialized real estate sectors.
Possible need to enhance due diligence, governance, and shariah-compliance auditing processes.

For the broader economy and financial markets:

Strengthening of the real estate investment ecosystem in Kuwait and GCC, especially in segments considered resilient.
Increased flow of capital into alternative real estate asset classes.
Potential to raise standards of shariah-compliance and increase investor confidence in transparent, ethical investment products.

Common Misunderstandings about Shariah-Compliant Real Estate Products

Not all real estate labelled “shariah-compliant” are the same; compliance depends on careful structuring, debt levels, lease types, and revenue sources.
Higher ethical or shariah screening does not always mean higher returns; sometimes returns may be slightly lower because of constraints.
Liquidity in real estate investments tends to be lower than in equities or bonds; investors need patience.
Tax, regulatory, or property maintenance costs can materially affect net yields.
Currency risk is real; even if investments are in U.S. asset classes, exchange rate fluctuations can impact returns for GCC-based investors.

What to Expect Next

InvestGB and Investcorp are expected to launch further offerings in the student housing sector, aligning with rising demand from domestic and international students.

New deals likely will be structured to increase shariah compliance visibility—possibly involving shariah boards, third-party compliance audit, transparent fee structures, and investor education.

Policy-wise, governments in the Gulf may further incentivize ethical investment vehicles (shariah funds, sukuk, etc.), which may create regulatory clarity or tax advantages for such investment partnerships.

InvestGB’s reinforcement of its partnership with Investcorp to provide shariah-compliant real estate investments marks a strategic shift in real estate finance in Kuwait and the GCC. For investors, this offers a chance to combine ethics with profitability; for the market, it signals that real estate investment is evolving to meet changing investor demands. As demand for ethical, stable, and diversified real estate exposure grows, this model may become a benchmark for many future investment products.