Concerns about Mohammed bin Rashid's Legislation creating the Dubai Investment Fund to manage public funds
In his capacity as the Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, has issued Law No. (25) of 2023, establishing the Dubai Investment Fund as an independent public entity operating commercially. The law grants the Fund financial and administrative independence to pursue its objectives and mandates it to invest in Dubai Government funds, surpluses, and the general reserve both locally and internationally.
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council of Dubai, issued The Executive Council’s Resolution No. (94) of 2023, forming the Fund’s Board of Directors chaired by His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum. The Board includes Vice Chairman His Excellency Abdulrahman Saleh Al Saleh, along with members Abdulaziz Mohammed Al Mulla, Rashid Ali bin Obood, and Ahmad Ali Meftah.
The Dubai Investment Fund is tasked with efficiently managing Dubai Government funds and reserves, generating returns for the benefit of current and future generations. It aims to enhance the financial stability of the Dubai Government by financing deficits and establishing strong financial reserves to promote long-term financial sustainability.
The Fund also aims to contribute actively to the realization of Dubai's strategic priorities and endorsed public policies through efficient investments in strategic and development projects, prioritizing sustainable development across vital sectors. It will undertake various roles, including investing government surpluses, establishing companies and investment funds, acquiring or merging entities, and participating in financial markets.
The Law outlines the Fund's roles, allowing it to explore investment prospects in stocks, bonds, and securities, and participate in the financial derivatives business. The Dubai Investment Fund is required to uphold principles of justice, transparency, and fair competition in its activities, making data and information accessible to the public by established principles and regulations.
Effective from its enactment date, the Dubai Investment Fund will serve as the Dubai Government’s vested authority for owning shares in entities like DEWA, Salik Company, Dubai Taxi Company, and other government-owned companies identified by Dubai’s Supreme Fiscal Committee.
