Banco do Brasil is planning to launch a Shariah-compliant fund in partnership with Singapore-based Islamic Bank of Asia. The fund will focus on stocks listed on theSão Paulo Stock Exchange and specifically in the commodities, mining, oil and gas sectors.
The fund will be managed in Brazil and marketed around the world.
Brazil is a significant exporter of Halal foods. In 2013 it shipped 1.48 billion tons of chicken to the Middle East. In January Abu Dhabi Equity Partners invested in a livestock financing program to fund the fattening of 70,000 head of cattle – the equivalent of entire UAE’s annual import of beef.