Joint funds sought to enhance market penetration

The GCC sovereign wealth funds (SWFs) should consider the establishment of joint funds both at the regional and international levels, Booz & Co said yesterday.

"Regionally, benefits from joint funds include sharing of risk, and increased investment opportunities," said Richard Shediac, a partner at Booz & Company. Internationally, joint funds can facilitate market penetration and enhance knowledge transfer mechanisms. The China Dubai Capital (CDC) joint fund, announced in April 2008, is a good example. The fund plans to invest in infrastructure, the oil industry, healthcare and other activities that will create synergies with the UAE's economy, while providing China with good investment opportunities in the region.

In another development, Mubadala Development yesterday said it signed a memorandum of understanding with France's Fonds Stratégique d'Investissement (FSI) to explore investment opportunities in France.