The Dubai Department of Finance has appointed London’s investment bank, Rothschild, to advise on the establishment of a fund to disburse $10 billion it recently raised from bonds.
The fund will be fully owned by the Department of Finance and controlled by the Supreme Fiscal Committee of Dubai. It will provide targeted financial support and liquidity to certain state-affiliated entities, while facilitating the reforms to protect the long-term viability of these entities.
In February, the Government of Dubai had launched a $20 billion long-term bond programme to fund its various spending and financing requirements. The first tranche of the $10 billion was fully subscribed by the Central Bank of the UAE. The second tranche is yet to be issued.
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