Bear and Saudi execs join forces

Bear Stearns has joined with a group of Saudi Arabian executives to provide investment products that comply with Islamic law. The new venture, to be called Bear Stearns Arabia Asset Management, will be a Saudi Arabian registered asset management company, with headquarters in Riyadh, serving institutions and high-net-worth individuals in Saudi Arabia. Islamic law, or Sharia, strictly regulates finance and investing, including restrictions on the use of interest, and prohibitions against investing in companies with ties to alcohol, tobacco, pornography, tobacco and certain foods. The venture will target wealthy clients, with traditional offerings including equity, fixed-income, hedge-fund and private-equity opportunities. Prince Mishaal Bin Abdullah Bin Turki Al-Saud, chief executive of Zad Investment Co., which manages his family's investments will be chairman. Michel Peretie, chief executive of Bear Stearns International Ltd., and Christian Yates, head of international operations for Bear Stearns Asset Management, will sit on the board of directors. The New York-based investment bank said in a statement that the move is the first step into the Persian Gulf region. "We hope to forge strong relationships in the region, in time allowing us to offer not only asset management products but also a full range of trading, brokerage and advisory services," said Mr. Peretie.