Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, has issued Law No. (25) of 2023 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.
As per the Law, Dubai Investment Fund will be responsible for investing Dubai Government funds, surpluses and the general reserve locally and internationally, WAM reported.
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 Fund’s 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 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.
The law states that, effective from the date it takes effect, Dubai Investment Fund will function as Dubai Government’s vested authority when it comes to owning shares in entities like the Dubai Electricity and Water Authority (DEWA), Salik Company, Dubai Taxi Company, and other companies directly owned by the Dubai Government. Additionally, it covers government-owned companies as identified by Dubai’s Supreme Fiscal Committee.
Source: Bahrain News Agency