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H.E Abdulrahman Al Saleh, Director General of Dubai's Department of Finance was appointed as Chairman of the Board of the Support Fund. The Support Fund is accountable to Dubai's Supreme Fiscal Committee ('SFC') and is supported by the Department of Finance of the Emirate of Dubai.
H.E Abdulrahman Al Saleh, Director General of Dubai's Department of Finance, and Chairman of Dubai Financial Support Fund, commented:
"The Dubai government wants to build on its achievements of the past 30 years, notably its development as a regional hub for sectors including trade, transport, tourism and finance. The Dubai Financial Support Fund is central to the achievement of Dubai's long term strategy for economic growth. The new Board's primary duty will be to prepare and adopt the criteria to be used in the allocation of funds for Dubai's strategic revenue-generating projects."
In addition to the appointment of HE Al Saleh as Chairman, the following members were appointed to the Board of the Support Fund:
• Mr Abdulaziz Rahmah Al Muhairi, Managing Director of the Investment Corporation of Dubai, as Deputy Chairman.
• Eng Mattar Mohammed Al Tayer, Chairman of the Board and Executive Director of Roads and Transport Authority in Dubai, as Board Member
• Mr. Majid Saif Al Ghurair, Chairman of SHUAA Capital, as Board Member.
• Dr. Riad Mohammed Khalfan Belhoul, Legal Counsel, as Board Member.
The Board's principal duties include the responsibility for establishing the Support Fund's operating policies and procedures and for recommending to the SFC the criteria for assessing loan applications by Government and Government-Related Entities ('GREs'). The Board will nominate the strategic projects to be financially supported. It will also adopt financial, administrative and technical regulations.
Moreover, His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Executive Council Chairman has issued the Executive Council Decree 19 -2009 appointing Marwan Iqbal Abedin as the Executive Director of the Dubai Financial Support Fund with the responsibility for managing the daily operations of the Support Fund.
Marwan Iqbal Abedin, Executive Director, Dubai Financial Support Fund, "The Dubai Financial Support Fund has been mandated to act as an independent entity to ensure that the projects we recommend for loans are fully aligned with Dubai's economic growth strategy. The process and the criteria for the assessment of loan applications will be robust and transparent. The loans will be made on a commercial basis, and it will be up to each recipient of the financial support whether to disclose the extent of its borrowing from the Support Fund."
Dubai Financial Support Fund
The Support Fund is an independent legal entity which is being established with the specific purpose of providing financial support and liquidity to Government and GREs undertaking projects of strategic importance within Dubai that contribute towards the overall economic development of the Emirate.
The Support Fund is authorised to invest in, hold and manage debt instruments on behalf of the Government of Dubai, to collect loan repayments and it may also re-invest these revenues. Furthermore, the Fund will provide loans and credit facilities on a commercial basis to Government and GREs which meet SFC-approved criteria in accordance with the Royal Decree 24-2009.
The Support Fund can issue financial instruments, including bonds and sukuks, inside and outside the Emirate on behalf of the Government of Dubai, invest in commercial projects, establish investment funds and manage institutions and corporates in order to provide liquidity for strategic projects of entities applying for funds. The Fund can also acquire partial or whole stakes in institutions and companies that are deemed to be in line with the overall strategic objectives of establishing it.
The commercial loans already made to Government and GREs under the first tranche of $10bn, issued in February 2009, will be transferred into the Support Fund. The Support Fund is mandated by the Dubai Government to manage the revenues generated by issuing loans, bills, bonds and sukuks and by investing its capital and assets. The Support Fund's other financial resources also include any other resources provided by the Government to help it achieve its goals.
Rana Mesbah
