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Investors seeking to tap into a diversified portfolio of properties and land acquisitions in the emerging Northern Emirates and United Arab Emirates markets should consider a 'first of its kind' Shariah compliant fund, according to the First Group.

The British-owned international property development company focusing specifically on emerging markets in the UAE is to launch its Emirates Opportunity fund on the Channel Island Stock Exchange in August.

The five-year closed-ended fund is set to be the first Guernsey-domiciled Shariah-compliant property fund investing in the UAE and will be available through self-invested personal pensions and Ssas, Isas and Peps.

Aiming to target profitable development projects and having an exposure to the emerging property markets of the Northern Emirates, the fund also seeks to achieve significant development gains as well as capital appreciation while remaining Shariah-compliant in all activities.

David Scott, commercial director of The First Group, said: "This fund presents investors with a unique opportunity to invest as the population boom in Dubai is considered one of the largest in the world and is contributing to an undersupply of residential housing in the region.

"One of the strategies of the fund is land banking and development, especially in the Northern Emirates. There are many reasons why attention could turn to the Northern Emirates due to their nature as real emerging markets with almost identical fundamentals as Dubai. The fund is 'ripe for the picking' along with Dubai and the other opportunities in the Northern Emirates presented by the economic overspill."

The company - which will be seeking to raise $100m (£50m) mainly from UK private investors with a minimum investment requirement of $25,000 and an internal rate of return of 17 per cent to 20 per cent a year - will invest in all classes of property assets in Dubai and the Northern Emirates in order to maximise returns.

In addition, investments will be made with a medium-term view, but the fund may engage in Shariah-compliant short-term trading activities whenever opportunities arise.

The First Group's Shariah and investment adviser Tabarak Partners is regulated by the Dubai Financial Services Authority and have handled more that $1.2bn in Islamic transactions.

Frank Cochran, managing director for Wolverhampton-based IFA FSC Investment Services, is optimistic about the new offering, believing it will be welcomed across the whole community.

He said: "Shariah Law is very strict on what you can and what you cannot invest in, so the Muslim community has to be very careful about where and what they invest in. Seen as the 'first of its kind', this will need a lot of publicity to make the Muslim community aware of its availability, but I believe is in a good position to do well.

"With regards to its internal rate of return it is very competitive and being available on platforms such as Sipps and Isas I do not see what investors have to lose.

"Emerging markets can be seen as volatile, especially in the area of investment, but the Northern Emirates and UAE are now regarded as positive territories. The international property market should not be tainted with the same brush as the UK market, as it seems it is moving on the way up overseas."