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New body is set up for govt investment

According to the 19-article legislation, the new body will enjoy financial and administrative independence. "With its headquarters in Dubai, the government-owned entity will have the full-fledge legal competence to achieve the objective for which it was established,” the legislation read. It will be under the authority of Dubai Ruler.

According to articles No. (4) and (5), the corporation will chalk out a strategy for investment of government funds taking into consideration enhancement of the private sector role through adoption of privatisation of the public sector as per a law to be issued in this respect. A comprehensive study will be conducted on avenues of investment in various sectors. The new investment arm will oversee companies and investment owned by the government. It will directly supervise management of government financial, industrial and services investment. It will also keep an eye on the activities of the affiliated companies and coordinate between them in addition to any other activities seen by the Chairman or the board as instrumental in serving the interest of the corporation.

Article No. (6) said that the corporation would be run by a board made up of not more than nine members including the chairman and his deputy. The law enrusted the board of directors with drawing up the corporation’s policies and internal regulations, approving its annual budget and managing government-owned investments. The corporation shall have an executive body headed by an corporate executive officer to be appointed by the board. The law becomes effective on May 3rd, the date it is issued and published in the official gazette.

Formation of board: His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued in his capacity as Ruler of Dubai, decree No. (15) for 2006, on the formation of the board of the Dubai Corporation for government investment.

The decree stated that Shaikh Mohammed will chair the board and will have Hamdan bin Mohammed bin Rashid Al Maktoum as his deputy. It named Shaikh Ahmed bin Saeed Al Maktoum, Shaikh Maktoum bin Mohammed bin Rashid Al Maktoum, Ahmed Humaid Al Tayer, Mohammed Abdullah Al Garagawi, Mohammed Ali Al Abbar, Sultan Ahmed bin Sulayem and Mohammed Ibrahim Al Shibani, as members for a tenure of three years. According to the decree, Mohammed Ibrahim Al Shibani will also serve as CEO of the corporation. The decree will come into force from the date of its issuance and wil be published in the gazette.