In a move to bolster strategic projects, Dubai has unveiled plans for a new investment fund, joining a network of state-supported wealth funds in the region that collectively manage nearly $4 trillion.
According to the state-run news agency WAM, the Dubai Investment Fund is set to house assets valued at billions of dollars, channeling government funds into both local and international investments. The fund will possess the authority to establish companies and investment funds, as well as acquire or merge firms. 
WAM stated on Monday, “The fund will concentrate on investments in stocks, bonds, and securities to attain sustainable returns and can explore prospects in local or international financial markets.”
Sheikh Maktoum bin Mohammed, Dubai’s Deputy Ruler, will serve as the chairman of the newly formed entity. Notably, the fund will include holdings in key entities such as the $33 billion utility DEWA, toll operator Salik Co., and Dubai Taxi Co., all of which underwent privatization within the past year.
These privatizations are part of the government’s broader initiative to offer stakes in 10 state-owned companies. While details about the total size of the new fund are currently unavailable, the government’s stake in DEWA alone is estimated to be around $28 billion.
Tarek Fadlallah, head of Nomura Holdings Inc.’s asset management arm in the Middle East, emphasized the importance of wealth funds in modern asset management. He stated, “When the state owns so many assets, it has an obligation to manage them responsibly.” Fadlallah added that consolidating assets under one umbrella promotes synergies, transparency, and allows industry experts to take the lead.
The new fund will be affiliated with the state conglomerate Dubai World, preserving its legal identity, according to WAM. Dubai World holds assets such as DP World, a significant player in the transformation of Dubai into a global trade hub.
Dubai already boasts a sovereign wealth fund, the $341 billion Investment Corporation of Dubai (ICD), which owns the Emirates Group, the parent company of the city-state’s airline. The ICD is chaired by Crown Prince Sheikh Hamdan bin Mohammed Al Maktoum.
The introduction of this new investment fund aligns with broader regional trends, as neighboring Abu Dhabi houses funds like ADIA, Mubadala Investment Co., and ADQ. Governments in the Gulf region, including Saudi Arabia’s Public Investment Fund and the Qatar Investment Authority, have been actively diversifying their economies away from oil and expanding their global influence through significant investments.