His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued a groundbreaking law establishing the Dubai Investment Fund as an independent public entity operating on a commercial basis. This new legislation empowers the Fund with both financial and administrative independence, allowing it to diligently pursue its objectives with the necessary legal mandate.
Furthering this initiative, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, has issued Dubai Executive Council Resolution No. 94 of 2023, outlining the formation of the Fund’s Board of Directors. The Board will be chaired by Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, with Abdulrahman Saleh Al Saleh appointed as Vice-Chairman. Additional members include Abdulaziz Mohammed Al Mulla, Rashid Ali bin Obood, and Ahmad Ali Meftah. The appointment of Abdulaziz Mohammed Al Mulla as the Managing Director and CEO of the Fund has received approval from the council.
In accordance with the newly enacted law, the Dubai Investment Fund assumes a crucial role in responsibly investing Dubai government funds, surpluses, and the general reserve, both domestically and internationally. These investments aim to generate sustainable returns that benefit current and future generations, adhering to the best practices and investment policies approved by the Board of Directors. The Fund plays a pivotal role in enhancing the financial stability of the Dubai Government by financing deficits and establishing robust financial reserves, thereby fostering long-term financial sustainability.
Additionally, the Dubai Investment Fund actively contributes to the realization of the emirate’s strategic priorities and endorsed public policies. This is achieved through efficient investments in strategic and development projects, prioritizing initiatives that drive Dubai’s sustainable development across vital sectors such as the economy and society, while diversifying income sources.
The law outlines the Fund’s diverse roles and responsibilities, including investing government surpluses, independently or collaboratively establishing companies and investment funds, acquiring or merging entities, and holding stakes in them. The Fund will focus on investments in stocks, bonds, and securities to achieve sustainable returns, exploring opportunities in both local and international financial markets while adhering to approved investment policies. It is authorized to deal with movable and immovable assets, manage funds, provide mortgages and guarantees, and participate in the financial derivatives business, all in compliance with Dubai’s laws. This legislative framework positions the Dubai Investment Fund as a key player in the region’s financial landscape, contributing to Dubai’s economic vision and strategic objectives.
The Law establishes the organizational structure of the Dubai Investment Fund, detailing the Board of Directors and executive roles, including the CEO appointed by the Chairman of The Executive Council of Dubai. The Fund is mandated to operate with principles of justice, transparency, and fair competition, making data accessible to the public.
Effective immediately, the Dubai Investment Fund serves as the Dubai Government’s authority for owning shares in entities like Dewa, Salik Company, and others directly owned by the government. It relieves the government of rights and obligations related to these companies.
All relevant government entities in Dubai must register their assets under the Fund. Dubai World will 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. This integration streamlines governmental assets and enhances financial management efficiency.