His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued a new law establishing the Dubai Investment Fund as an independent public entity operating on a commercial basis. The law also endows the Fund with the financial and administrative independence to pursue its objectives along with the legal mandate to do so.
Furthermore, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, issued Dubai Executive Council Resolution No. 94 of 2023 related to the formation of the Fund’s Board of Directors chaired by Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai. Abdulrahman Saleh Al Saleh will serve as Vice-Chairman of the Board, with Abdulaziz Mohammed Al Mulla, Rashid Ali bin Obood, and Ahmad Ali Meftah as members.
The council has given its approval for the appointment of Abdulaziz Mohammed Al Mulla as the Managing Director and CEO of the Fund.
As per the Law, Dubai Investment Fund will be responsible for investing Dubai government funds, surpluses and the general reserve locally and internationally. The investments thus made will seek to generate returns benefiting both current and future generations while implementing best practices and the investment policy approved by the board of directors. The Fund also seeks to bolster the financial stability of the Dubai Government by financing the government’s deficit and establishing strong financial reserves, thereby promoting long-term financial sustainability.
The Dubai Investment Fund also endeavours to actively contribute to the realisation of the emirate’s strategic priorities and endorsed public policies through efficient investments in strategic and development projects. Priority is accorded to initiatives that foster Dubai’s sustainable development across vital sectors, including the economic and social spheres, while diversifying income sources.
The law specifies that, without infringing upon the powers and jurisdictions granted to the Investment Corporation of Dubai, established under Law No. (11) of 2006 and its amendments, and in accordance with prevailing regulations in the emirate, the Dubai Investment Fund assumes diverse roles and responsibilities to fulfil its objectives. This includes investing government surpluses, establishing companies and investment funds independently or in collaboration with third parties, acquiring or merging companies, projects and funds, besides holding stakes in them.
The Fund will focus on investments in stocks, bonds, and securities to achieve sustainable returns and can explore prospects in local or international financial markets while following investment policies approved by the board of directors. Additionally, it can deal in movable and immovable assets, manage funds, provide mortgages and guarantees, besides participating in the financial derivatives business, all in compliance with Dubai’s laws.