Last month, Dubai had set up a special $20 billion fund with the motive to aid its embattled economy and, on Wednesday, it named a chairman to head this fund. The basic aim of the fund is also to lend money to struggling state companies and projects in the sheikdom.
The name of the chairman is Abdulrahman Al Saleh, director general of Dubai's Department of Finance, who will lead the $20 billion fund, known as the Dubai Financial Support Fund.
Furthermore, the role of the deputy director would be undertaken by Rahmah Al Muhairi, managing director of the Investment Corporation of Dubai.
Department of Finance said in an emailed statement Wednesday: "The United Arab Emirates central bank based in oil-rich Abu Dhabi provided the first $10 billion for the fund earlier this year by subscribing to bonds issued by Dubai in a form of economic bailout for the emirate."
If the sheikhdom wants to help revive its economy - which has also suffered from a near 50% drop in property prices in a year and international banks are reluctant to lend it anymore money -, then it requires to raise the second $10 billion tranche for the fund this year.
The statement further specified, "Mattar Mohammed Al Tayer, chairman of Dubai's Roads and Transport Authority, Majid Saif Al Ghurair, chairman of Shuaa Capital and Riad Mohammed Khalfan Belhoul, legal counsel will also act as board members."
It should be noted that setting the criteria for assessing loan applications by the Dubai government and the emirate's government-related entities that need cash would be included in the main duties of the board, apart from nominating projects that need to be financially supported.
Marwan Iqbal Abedin, who has been appointed as executive director of the fund said in the statement: "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."
He added: "The fund will be able to issue financial instruments, including bonds and sukuks, inside and outside of Dubai, invest in commercial projects and establish investment funds. It will also be able to acquire partial or whole stakes in institutions and companies."
