KUWAIT A Kuwaiti company that specializes in Islamic investments is to set up subsidiaries in the Persian Gulf states of Qatar and the United Arab Emirates, the newspaper Al-Watan reported Monday. Investment Dar's Managing Director, Adnan al-Mussalam, told the newspaper the subsidiary in Qatar would have a capital of 4 million dinars ($13.15 million). The one in the U.A.E. would be a partnership with other investors and its capital is expected to be at least 100 million dinars ($328.94 million).

Demand for Islamic finance, which is based on profit sharing rather than interest, is increasing in Kuwait. Investment Dar - "Dar" means house in classical arabic - has a capital of 22.75 million dinars ($74.83 million) and total assets of 88.99 million ($292.73 million). It made around 3 million dinars ($9.86 million) in profits last year, and it expects to be listed on the Kuwait Stock Exchange soon.

(AP)