Dubai, January 8, 2024 – His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has taken a significant step towards enhancing Dubai’s financial stability and promoting sustainable development. In a landmark move, he has issued a new law establishing the Dubai Investment Fund as an independent public entity operating on a commercial basis.
The Dubai Investment Fund is granted financial and administrative independence to carry out its objectives effectively and efficiently. It also has the legal mandate to do so, following the issuance of this important law.
Under the leadership of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, the Fund’s Board of Directors has been formed. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum will serve as the Chairman, with Abdulrahman Saleh Al Saleh as the Vice-Chairman. The board members include Abdulaziz Mohammed Al Mulla, Rashid Ali bin Obood, and Ahmad Ali Meftah.
Abdulaziz Mohammed Al Mulla has been appointed as the Managing Director and CEO of the Fund, in accordance with the council’s approval.
The primary responsibility of the Dubai Investment Fund is to invest Dubai government funds, surpluses, and the general reserve, both locally and internationally. These investments aim to generate returns that benefit both current and future generations. The Fund will follow best practices and investment policies approved by the board of directors. It will also play a crucial role in financing the government’s deficit and establishing strong financial reserves, contributing to long-term financial sustainability.
Furthermore, the Fund will actively support the achievement of Dubai’s strategic priorities and endorsed public policies by efficiently investing in strategic and development projects. Priority will be given to initiatives that foster sustainable development across vital sectors, including the economic and social spheres, while diversifying income sources.
The Dubai Investment Fund will operate alongside the Investment Corporation of Dubai, established under Law No. (11) of 2006, and adhere to prevailing regulations in the emirate. It will assume diverse roles and responsibilities, including investing government surpluses, establishing companies and investment funds, acquiring or merging companies, projects, and funds, as well as holding stakes in them.
In terms of investment, the Fund will focus on stocks, bonds, and securities to achieve sustainable returns. It can also explore opportunities in local or international financial markets while following investment policies approved by the board of directors. Additionally, it will engage in managing funds, providing mortgages and guarantees, and participating in the financial derivatives business, all in compliance with Dubai’s laws.
The organizational structure of the Dubai Investment Fund is defined in the law, outlining the composition and responsibilities of its Board of Directors and executive structure. The CEO of the Fund will be appointed by the Chairman of The Executive Council of Dubai.
In accordance with the law, the Fund is committed to upholding principles of justice, transparency, and fair competition in all its activities and operations. It will make data and information accessible to the public as per the regulations set by its Board of Directors.
Effective from the date it takes effect, the Dubai Investment Fund will become the vested authority of the Dubai Government in owning shares in entities such as the Dubai Electricity and Water Authority (DEWA), Salik Company, Dubai Taxi Company, and other government-owned companies. This includes companies identified by Dubai’s Supreme Fiscal Committee. The Fund will take over all rights and obligations related to these companies, including contracts, agreements, commitments, deposits, bank accounts, and loans associated with their shares.
All relevant government entities in Dubai are required to register all their assets, stocks, shares, movable and immovable properties, licenses, permits, bonds, privileges, and other instruments under the Dubai Investment Fund. Dubai World will also be affiliated with the Dubai Investment Fund while maintaining its legal identity as defined by Law No. (3) of 2006 and its amendments regarding the establishment of Dubai World.
The establishment of the Dubai Investment Fund marks a significant milestone in Dubai’s journey towards financial sustainability and economic diversification. It will play a pivotal role in managing government funds and promoting responsible and strategic investments for the benefit of Dubai and its future generations.
