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Mohammed sets up Support Fund to manage $20 bn bond programme
2009-07-22 14:56:05
WAM Dubai, 22nd 2009 (WAM) -- Vice President and Prime Minister of the UAE H. H. Sheikh Mohammed bin Rashid Al Maktoum has issued in his capacity as Ruler of Dubai law no 24 of 2009 establishing the Dubai Financial Support Fund (Support Fund).

Director General of Dubai's Department of Finance Abdul Rahman Al Saleh said the Fund would manage on behalf of the Government of Dubai proceeds of the $ 20 billion bond programme.

''The Fund will provide loans and credit facilities on a commercial basis to government and non-government entities executing strategic and developmental projects in the emirate of Dubai, Al Saleh said.

''As an independent legal agency, the Fund aims to offer financial support and cash liquidity to qualified government and non-government bodies carrying out projects in Dubai of strategic importance and leveraging economic development in the emirate,''he added.

According to him, the Fund is authorised to keep, collect, manage, invest and reinvest debt bonds and their proceeds.

He explained that these facilities would only be extended to qualified bodies as per criteria set out by the Fund supervisor (Dubai Higher Committee for Fiscal Policy) to ensure efficient allocation of funds in compatible with Dubai's long-term growth strategy.

The Fund, he affirmed would not reveal names of the financial support recipients and disclosure regarding details of the assistance is left to them.

''Towards provision of cash liquidity to strategic projects and seekers of financial support, the Fund may issue, on behalf of the Government of Dubai, bonds, sukuk and other financial instruments inside and outside the emirate, invest in commercial projects, establish investment funds and manage commercial companies. It may also acquire whole relevant commercial firms or part of their stakes or shares.

The Fund will be financed from resources earmarked for its funding from the first $10 billion tranche of bond programme which was launched early this year in addition to proceeds of loans, investment of its assets and funds, issue of bonds and sukuk and government support.

Loans extended under the first tranche of the bond programme will have their ownership converted to the Fund.

A board of directors will run the fund, devise its general policies of the fund and its affiliated companies, identify their programmes and projects, obtain loans and funds, launch companies and commercial projects, sell and buy assets and securities and propose criteria and requirements for offering financial support as well as strategic projects.

The Fund's fiscal year starts on 1st January and ends on 31st December. The first fiscal year will start from the date of enforcement of the law no 24 of 2009 and end on 31st December of 2010.

WAM/TF
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