•  Dubai initiates the transfer of shares from major companies into a newly established investment fund, strategically aiming to bolster the emirate’s financial stability through diversified investments both domestically and internationally.

•  The new fund, encompassing shares from entities like Dubai Electricity and Water Authority, Salik toll-road operator, and Dubai Taxi, is tasked with managing government funds, surpluses, and general reserves. 

•  Led by Sheikh Maktoum bin Mohammed bin Rashid al-Maktoum, the fund’s leadership signifies a significant role in overseeing transactions, including the sale of stakes in entities like DEWA and Salik.

Dubai is set to transfer shares from some of its major companies into a newly established investment fund, aiming to enhance the emirate’s financial stability through strategic investments both domestically and internationally. 

As one of the world’s fastest-growing cities, Dubai’s property market has experienced significant growth, fueled by factors such as Russian demand and a swift economic recovery from the pandemic. 

The new fund, which will include shares from entities like Dubai Electricity and Water Authority, Salik toll-road operator, and Dubai Taxi, will manage government funds, surpluses, and general reserves. 

It will focus on diversified investments in stocks and bonds, exploring opportunities in both domestic and foreign markets. 

This move reflects Dubai’s robust fiscal position and aligns with a broader trend among Gulf sovereign wealth funds diversifying their portfolios amid higher oil prices.

The distinction between the new fund and Dubai’s sovereign wealth fund, the Investment Corporation of Dubai (ICD), remains unclear. 

Established in 2006 through the transfer of assets from the government’s investments portfolio, ICD holds stakes in various companies, including Emirates airline, Emirates NBD, Emaar Properties, and Emirates National Oil Company. 

The new fund will have an affiliation with Dubai World, the state-owned conglomerate that owns DP World, maintaining its legal entity status. 

Sheikh Maktoum bin Mohammed bin Rashid al-Maktoum, the son of the Dubai ruler and deputy ruler, as well as the finance minister of the UAE, will chair the fund. 

Under Sheikh Maktoum’s leadership, the fund is expected to oversee transactions such as the sale of stakes in entities like DEWA and Salik, with DEWA raising $6.1 billion in an initial public offering last year.