Mohammed bin Rashid has established the Dubai Investment Fund to manage government investments.
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates, signed Law No. (25) of 2023, which establishes the Dubai Investment Fund as an autonomous public organization that does business on a commercial basis, in his capacity as the Ruler of Dubai. The Law also gives the Fund the legal authority to achieve its goals and the financial and administrative independence to do so.
Moreover, His Highness The Executive Council’s Resolution No. (94) of 2023, which relates to the establishment of the Fund’s Board of Directors, was issued by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council of Dubai. The Board will be presided over by His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai. The Vice Chairman of the Board is His Excellency Abdulrahman Saleh Al Saleh, and its members are Ahmad Ali Meftah, Rashid Ali bin Obood, and Abdulaziz Mohammed Al Mulla.
The law states that the general reserve, surpluses, and monies from the Dubai government must be invested both domestically and abroad by the Dubai Investment Fund. The aforementioned investments will aim to provide returns that will benefit present and future generations while adhering to the investment policy and best practices that have been authorized by the Board of Directors of the Fund. By funding the government’s deficit and building substantial financial reserves, the Fund also aims to support the long-term financial viability of the Dubai Government.
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.
Multiple roles
According to the law, the Dubai Investment Fund takes on a variety of roles and responsibilities in order to achieve its goals, as long as it complies with current Emirati regulations and does not interfere with the authority and jurisdiction granted to the Investment Corporation of Dubai, which was founded under Law No. (11) of 2006 and its amendments. This covers investing public surpluses, starting businesses and investment funds on your own or in partnership with others, and buying out or combining businesses, initiatives, and funds in addition to owning stock in them.
In order to generate sustainable returns, the Fund will primarily concentrate on stock, bond, and securities investments. It may also investigate opportunities in regional or global financial markets in accordance with the Board of Directors’ authorized investment strategies. In addition, it can engage in the financial derivatives industry while adhering to Dubai’s legal requirements. It can also trade in both moveable and immovable assets, manage funds, and offer mortgages and guarantees.
The Law establishes the Dubai Investment Fund’s organizational structure, including its executive structure and the makeup and duties of its board of directors. This involves choosing the CEO of the Fund, who will be chosen in accordance with a directive from Dubai’s Executive Council Chairman.
The Dubai Investment Fund is required by law to maintain the values of justice, openness, and fair competition in the course of its business dealings. It is required to make the data and information publicly available in compliance with the guidelines and standards established in this respect by its Board of Directors-Mohammed bin Rashid has established the Dubai Investment Fund to manage government investments.
According to the law, the Dubai Investment Fund will act as the vested authority of the Dubai Government with regard to holding shares in organizations such as the Dubai Electricity and Water Authority (DEWA), Salik Company, Dubai Taxi Company, and other businesses that the Dubai Government directly owns as of the day the law goes into effect. It also includes government-owned businesses that Dubai’s Supreme Fiscal Committee has designated.
Rights and obligations
The Fund will release the Dubai Government from all rights and liabilities pertaining to corporations, particularly with regard to ownership of the shares that make up the capital of those firms. It will also release the government from all responsibilities and contracts pertaining to such shares, including deposits, bank accounts, loans, and agreements.
Additionally, all pertinent government agencies in Dubai are required to register all of their stocks, shares, moveable and immovable properties, licenses, permits, bonds, privileges, and other instruments in the Dubai Investment Fund. In addition, Dubai World will maintain its legal identity as outlined in Law No. (3) of 2006 and its revisions pertaining to Dubai World’s establishment, all the while being associated with the Dubai Investment Fund.
Subject to the Board’s approval, the Chairman of the Dubai Investment Fund Board of Directors will make decisions about the Law’s implementation.
The Dubai Government’s Representation in the Companies It Owns, Resolution No. (3) of 2022, is therefore revoked. All other laws that might conflict with Law No. (25) of 2023 and Executive Council Resolution No. (94) of 2023 are revoked. Both the Law and the Resolution will be published in the Official Gazette and take effect on the day of issuance.