Bahrain-based Addax Bank, in partnership with The Fine Art Fund Group, has announced the launch of a $35 million ‘Middle Eastern Fine Art Fund by Addax’.

The fund is launched in parallel with the largest fair for modern and contemporary art, ArtParis- Abu Dhabi which is taking place at the Emirates Palace from November 18 to 21.

The fund will target modern and contemporary artwork across the Middle East, and is expected to have an initial term of five years.

“The art market in the Middle East has experienced substantial growth in the past five years driven by burgeoning international demand for Islamic and Middle Eastern art. The region’s art market is now entering an important phase of development as Middle Eastern art artists begin to gain cultural prominence on an international level. However, despite these positive indicators for future growth, the market remains largely untapped,” said Yousef Al-Essa, CEO, Addax Bank.

The ‘Middle Eastern Fine Art Fund by Addax’ will provide regional investors with the opportunity to participate in the dynamic growth that the Middle Eastern art world is currently experiencing. “We have established a reputation for ourselves throughout the region for bringing innovative and profitable investment opportunities to our clients. With the launch of our new art fund Addax is once again well positioned to deliver positive financial returns to its investors and shareholders,” added Al-Essa.

According to experts, the UAE art market alone has the potential to develop into a $250 million industry over the next few years, with the art market in the rest of the Gulf set to reach a value of approximately $100 million. Earlier this year, Christie’s, the world’s leading auction house, fourth sale of modern and contemporary art in the UAE fetched an impressive $10 million.

Philip Hoffman, the CEO and founder of the Fine Art Fund Group, stated: “We have been watching the Middle Eastern Market for three years, and now we are making a long term commitment to the development of art in this region. We are here to stay and we will invest over a long period of time enable simultaneous growth with the market. We believe that the Middle East will make a contribution of its own to the evolvement of the global art market and is rich with opportunity. But our commitment is to be a long term player, and that can only be achieved through a gradual strategy of art investment, as well as a nurturing of the market, in order to bring Middle Eastern Art into the international spotlight.”

Addax Bank has created an independent committee of art buyers and art advisers to advise the bank on its fund, which includes prominent Beirut-based gallery owner and art dealer Saleh Barakat. - TradeArabia News Service