News developments
Dubai: Dubai Investment Fund Established
Khaleej Times (United Arab Emirates), 11 December 2023: Dubai’s Ruler has announced they have approved a Law to establish the Dubai Investment Fund.
It will be an independent public entity and operate on a commercial basis.
It will have its own financial and administrative independence.
The Law defines its organisational structure, details the composition and responsibilities of its Board of Directors as well as its executive structure. This includes the appointment of the Fund’s CEO, which will be done in line with an Executive Council Decision.
The Fund has to uphold principles of justice, transparency and fair competition in the conducting of its activities and operations.
It will have the authority to make data and information accessible to the public in line with the principles and regulations set out by the Board of Directors.
From the date the Law comes into force, the Fund will act as Dubai Government’s vested authority in owning shares in entities like the Dubai Electricity and Water Authority, Salik Company, Dubai Taxi Company and other companies directly owned by the Dubai Government. It also covers government-owned companies as identified by Dubai’s Supreme Fiscal Committee.
The Fund will relieve the Dubai Government of rights and obligations related to companies, specifically in terms of ownership of shares comprising the capital of these companies, as well as all contracts, agreements, commitments, deposits, bank accounts and loans associated with those shares.
All relevant government entities in Dubai must register all their assets, stocks, shares, movable and immovable properties, licences, permits, bonds, privileges and other instruments with the Fund.
In addition, Dubai World will be affiliated with the Fund without preserving its legal identity under Dubai Law No. 3/2006 (as amended).
Under the Law, the Fund will be responsible for investing Dubai government funds, surpluses and general reserves locally and internationally. The investments made will aim to generate returns benefiting current and future generations. It will also implement best practices and the investment policy approved by the Board of Directors.
In addition, the Fund will improve the financial stability of the Dubai Government by financing the government’s deficit and establishing strong financial reserves. The aim is to promote long-term financial sustainability.
The Fund will be responsible for actively contributing to the realisation of the Emirate’s strategic priorities and approving public policies through efficient investments in strategic and development projects.
Priority will be given to initiatives that support the Emirate’s sustainable development across vital sectors, including economic and social.
It will also give priority to initiatives that help diversify income sources.
The Law will not affect the powers and jurisdiction of the Investment Corporation of Dubai. The Corporation was established by virtue of Dubai Law No. 11/2006 (as amended).
It will also not affect the regulations currently in force in the Emirate.
The Fund will focus on investments in stocks, bonds, and securities to achieve sustainable returns.
It can explore prospects in local or international financial markets providing it follows investment policies approved by the Board of Directors.
It will also be able to deal in movable and immovable assets, manage funds, provide mortgages and guarantees and participate in the financial derivatives business.
The Chairman of Dubai’s Executive Council has also issued Dubai Executive Council Decision No. 94/2023 establishing the Board of Directors for the Fund.
The appointment of Abdulaziz Mohammed Al Mulla as Managing Director and CEO of the Fund has also been approved.
Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum will be the Chairman of the Board of Directors.
The First Deputy Ruler of Dubai. Abdulrahman Saleh Al Saleh will be Vice-Chairman and Abdulaziz Mohammed Al Mulla, Rashid Ali bin Obood and Ahmad Ali Meftah will be Board members.
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