UAE Launches Dubai Investment Fund | Chief Investment Officer

The United Arab Emirates has issued a new law establishing the Dubai Investment Fund as an independent public entity operating on a commercial basis.

The fund will be responsible for investing Dubai government funds, surpluses and the general reserve, domestically and abroad. The investments are intended to generate returns for current and future generations, as well as reinforce the financial stability of the Dubai government by financing its deficit and establishing strong financial reserves.

According to the new law, the fund will function as the Dubai government’s vested authority for owning shares in companies such as the Dubai Electricity and Water Authority, Salik Co., Dubai Taxi Co. and other companies directly owned by the Dubai government. It also includes government-owned companies as identified by Dubai’s Supreme Fiscal Committee.

According to Dubai’s government, the fund will focus on investments in stocks, bonds and securities to earn sustainable returns and will be allowed to seek prospects in local or international financial markets while following investment policies approved by its board of directors. Additionally, it can deal in movable and immovable assets, manage funds, provide mortgages and guarantees and participate in financial derivatives.

The Dubai Executive Council, Dubai’s decision making body, has tapped Abdulaziz Mohammed Al Mulla as the managing director and CEO of the fund. The Dubai Investment Fund’s board of directors will be chaired by Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the first deputy ruler of Dubai. The board will also include Abdulrahman Saleh Al Saleh as vice chairman, with Rashid Ali bin Obood, Ahmad Ali Meftah and Al Mulla as members.

The new law specifies that the fund cannot encroach on the powers and jurisdictions granted to the Investment Corp. of Dubai, the emirate’s principal investment arm. However, the fund will invest government surpluses, establish companies and investment funds independently or in collaboration with third parties, and acquire or merge companies, projects and funds in addition to owning stakes in them.

The creation of the fund will relieve the Dubai government of rights and obligations related to companies, specifically ownership of shares comprising the capital of the companies, in addition to all contracts, agreements, commitments, deposits, bank accounts and loans associated with those shares.