Sheikh Mohammed bin Rashid establishes Dubai Investment Fund to oversee government investments

New fund aims to enhance financial stability and generate returns
Sheikh Mohammed bin Rashid establishes Dubai Investment Fund to oversee government investments
Sheikh Mohammed bin Rashid Al Maktoum (Photo Credit: WAM)

Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President Prime Minister and Ruler of Dubai, has issued a law establishing a new fund in Dubai. 

According to an announcement by the Dubai Media Office, the fund, known as the Dubai Investment Fund, will function as an independent public entity responsible for overseeing all government investments. Operating on a commercial basis, it will possess both financial and administrative autonomy to pursue its objectives in accordance with its legal mandate.

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The investments made by the Dubai Investment Fund will aim to generate returns that benefit both present and future generations. These investments will be guided by the best practices and investment policy approved by the fund’s board, which will be chaired by Sheikh Maktoum bin Mohammed, First Deputy Ruler of Dubai.

Enhancing financial stability

Additionally, the fund aims to enhance the financial stability of the Dubai government. It will achieve this by financing the government’s deficit and establishing robust financial reserves, as stated by the media office.

The Dubai Investment Fund, “without infringing upon the powers and jurisdictions granted to the Investment Corporation of Dubai”, will invest government surpluses, establish companies and investment funds independently or in collaboration with third parties, acquire or merge companies, projects and funds, besides holding stakes in them.

It will focus on investments in stocks, bonds and securities and can explore prospects in local or international financial markets.

The fund will function as Dubai’s vested authority when it comes to owning shares in listed entities such as the Dubai Electricity and Water Authority, Salik Company and Dubai Taxi Company (DTC), the media office said.

Expanding financial market scale

In November 2021, Dubai revealed its intention to list 10 state-owned companies in order to expand the scale of its financial market to AED3 trillion ($817 billion).

Among these 10 state-owned enterprises, four were successfully listed on the Dubai Financial Market (DFM) in the previous year.

DEWA’s listing stood out as the largest initial public offering (IPO) in the GCC region, raising $6.1 billion. Additionally, state-owned Tecom, Salik, and Empower collectively raised $2.2 billion through their respective IPOs in June, September, and November 2022.

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