Abu Dhabi Capital Management (ADCM) has announced that it is to list an investment fund focused on the Middle East on AIM.

Qannas Investments, managed by ADCM, will take the form of a newly-established closed-end investment vehicle and will invest in under-valued equities and debt instruments in countries within the Gulf Co-operation Council (GCC) region.

It aims to deliver an internal rate of return (IRR) of 20 per cent, with investments to be held for between three and five years to take advantage of rising values during the ‘anticipated economic recovery’.

Chris Ward, chairman of Qannas, commented, ‘We believe that this is an under-invested region with strong credentials, including strong economic growth rates and a wealth of natural resources.

‘Liquidity dislocation in the region has led to declines in asset values, creating compelling investment opportunities.’

ADCM was established in January 2011 and currently manages over $100 million in assets, led by chief investment officer Jassim Alsiddiqi, formerly CIO of Abu Dhabi Capital Group.

The GCC region is predicted to see substantial growth this year, with an International Monetary Fund (IMF) report in October 2011 forecasting 7 per cent GDP growth in 2012 for the region.

Despite this growth, the Nasdaq Middle East and North Africa (MENA) Index sold off 20.8 per cent in 2011 and there are substantial credit constraints for companies in the GCC region.

Qannas believes that this therefore represents an opportunity to ‘acquire assets at prices below their true value’.