DIC & China Launch $1B Fund

Dubai International Capital, the international investment arm of Dubai Holding, and First Eastern Investment Group, a Hong Kong-based group headed by Victor Chu, announced on Monday that they have launched a US$1bn fund.

Called China Dubai Capital, the fund will invest in Chinese companies, which “could create synergies with the UAE's economic growth and with the potential to be listed on the Dubai securities markets”.

The first closing of the fund is expected to happen in May, with at least US$500m coming from Asian and Gulf investors.

“This is a unique opportunity to create a win-win situation for China and the UAE,” believes Chu.

He added: “Chinese companies are very attracted by the opportunities arising from the opening up of the Gulf region.

“The UAE, particularly Dubai, is strategically positioned as the natural gateway for the Gulf Co-operation Council access, as well as for capital raising through its established securities markets.”