Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, yesterday appointed two men, his top financial official and a government banker who specialises in selling property loans, to run the new fund distributing US$20 billion (Dh73.46bn) in emergency funds to government-related companies.
Sheikh Mohammed issued a royal decree naming Abdul Rahman al Saleh, the director general of Dubai's Department of Finance, as the chairman of the Dubai Financial Support Fund, which was established last month.
To head the fund's day-to-day operations, he named Marwan Iqbal Abedin, who until recently was director of marketing and originations at the Emirates National Securitisation Corporation, or ENSEC, a government-controlled investment bank that sells mortgage-backed securities and other complex debt obligations.
"The Dubai Financial Support Fund is central to the achievement of Dubai's long-term strategy for economic growth," said Mr al Saleh in a statement accompanying the announcement.
"The new board's primary duty will be to prepare and adopt the criteria to be used in the allocation of funds for Dubai's strategic revenue-generating projects."
Dubai has already borrowed $10bn from the Central Bank and plans to issue bonds to raise $10bn more, as it races to keep key infrastructure projects rolling and make payments on an estimated $80bn in debt in the face of falling property prices and tight credit.
Residential property prices in Dubai have fallen about 30 per cent since their peak last September, according to data from Reidin.com, which compiles transactions registered with the Dubai Land Department.
The slump has contributed to a dramatic slowdown in economic growth across the UAE, with economists predicting the economy will shrink slightly this year amid lower oil prices and rising unemployment in the property and construction sector.
Sheikh Mohammed also announced the other members of the fund's board, including its deputy chairman, Abdul Aziz al Muhairi, the managing director of the Investment Corporation of Dubai; Mattar Mohammed al Tayer, the chairman and executive director of Dubai's Roads and Transport Authority; Majid al Ghurair, the chairman of Shuaa Capital; and Riad Mohammed Khalfan Belhoul as legal counsel.
The fund will report to Dubai's Supreme Fiscal Committee, which is headed by Sheikh Ahmed bin Saeed Al Maktoum, the chairman of Emirates Group. The committee includes Mr al Saleh and Mohammed al Shaibani, the chief executive of the Investment Corporation of Dubai.
Mr Abedin, the fund's new executive director, is a relative unknown. A former Merrill Lynch banker, he was at ENSEC in 2005 when it announced the UAE's first AAA-rated, asset-backed securitisation, which was $350 million of notes backed by mortgages owed by buyers of villas, townhomes and apartments at Nakheel's Palm Jumeirah, where prices have fallen more than 60 per cent from their peak.
The mortgages were issued by Tamweel, formerly one of the UAE's two largest home lenders. Tamweel ceased lending operations last November and remains inactive pending a decision by the Government on whether to merge it with its fellow mortgage lender, Amlak Finance.
Nakheel is now expected to be one of the first recipients of the fund's attention. Nakheel has $3.5bn in Islamic bonds due in December.
Whether Dubai intends to pay the bond in full, and if so whether it will raise the cash by borrowing it or selling off assets, have been key questions among bankers and investors.
The ENSEC securitisation was the same kind of mortgage-backed instrument that in the US created the subprime crisis in 2007, in spite of their top credit ratings.
But analysts and economists in the UAE have called for the creation of an agency such as ENSEC that could buy mortgages from banks so they will have more cash to lend to the nation's credit-starved property market.
Whether Mr Abedin's appointment means that the Financial Support Fund would try to raise cash by securitising government-controlled assets, such as mortgages or cash flows on property, remains unclear.
In addition to administering what remains from Dubai's first $10bn from its bond issue bought by the Central Bank, the fund will be in charge of the next $10bn bond sale and has broad authority to issue more debt on behalf of the Dubai Government if it is needed.
ENSEC is partly owned by Istithmar, a wholly owned subsidiary of government-owned Dubai World, which also owns Nakheel. Mr Abedin has also served on Istithmar's board of directors. ENSEC's other major shareholder, the Dubai Islamic Bank, is controlled by government-owned Investment Corporation of Dubai.
"The Dubai Financial Support Fund has been mandated to act as an independent entity to ensure that the projects we recommend for loans are fully aligned with Dubai's economic growth strategy," Mr Abedin said in the announcement. "The process and the criteria for the assessment of loan applications will be robust and transparent."
Investors have been eager to know just how the new fund will distribute its support, but when he announced the fund, Mr al Saleh said it would leave it up to recipient companies to disclose whether they had received any money and under what terms.
Mr Abedin reiterated that point in yesterday's announcement, saying: "The loans will be made on a commercial basis, and it will be up to each recipient of the financial support whether to disclose the extent of its borrowing from the Support Fund."
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UAE currency: the story behind the money in your pockets
Company profile
Company name: Fasset
Started: 2019
Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices
UNSC Elections 2022-23
Seats open:
- Two for Africa Group
- One for Asia-Pacific Group (traditionally Arab state or Tunisia)
- One for Latin America and Caribbean Group
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Countries so far running:
Company Profile
Company name: Hoopla
Date started: March 2023
Founder: Jacqueline Perrottet
Based: Dubai
Number of staff: 10
Investment stage: Pre-seed
Investment required: $500,000
MATCH INFO
Sheffield United 3
Fleck 19, Mousset 52, McBurnie 90
Manchester United 3
Williams 72, Greenwood 77, Rashford 79
Roll of honour 2019-2020
Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain
West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership
UAE Premiership
}Winners: Dubai Exiles
Runners up: Dubai Hurricanes
UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II
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Winners: Barrelhouse
Runners up: RAK Rugby
The Little Things
Directed by: John Lee Hancock
Starring: Denzel Washington, Rami Malek, Jared Leto
Four stars
The Specs
Engine: 1.6-litre 4-cylinder petrol
Power: 118hp
Torque: 149Nm
Transmission: Six-speed automatic
Price: From Dh61,500
On sale: Now
Timeline
1947
Ferrari’s road-car company is formed and its first badged car, the 125 S, rolls off the assembly line
1962
250 GTO is unveiled
1969
Fiat becomes a Ferrari shareholder, acquiring 50 per cent of the company
1972
The Fiorano circuit, Ferrari’s racetrack for development and testing, opens
1976
First automatic Ferrari, the 400 Automatic, is made
1987
F40 launched
1988
Enzo Ferrari dies; Fiat expands its stake in the company to 90 per cent
2002
The Enzo model is announced
2010
Ferrari World opens in Abu Dhabi
2011
First four-wheel drive Ferrari, the FF, is unveiled
2013
LaFerrari, the first Ferrari hybrid, arrives
2014
Fiat Chrysler announces the split of Ferrari from the parent company
2015
Ferrari launches on Wall Street
2017
812 Superfast unveiled; Ferrari celebrates its 70th anniversary
The drill
Recharge as needed, says Mat Dryden: “We try to make it a rule that every two to three months, even if it’s for four days, we get away, get some time together, recharge, refresh.” The couple take an hour a day to check into their businesses and that’s it.
Stick to the schedule, says Mike Addo: “We have an entire wall known as ‘The Lab,’ covered with colour-coded Post-it notes dedicated to our joint weekly planner, content board, marketing strategy, trends, ideas and upcoming meetings.”
Be a team, suggests Addo: “When training together, you have to trust in each other’s abilities. Otherwise working out together very quickly becomes one person training the other.”
Pull your weight, says Thuymi Do: “To do what we do, there definitely can be no lazy member of the team.”
Hamilton profile
Age 32
Country United Kingdom
Grands Prix entered 198
Pole positions 67
Wins 57
Podiums 110
Points 2,423
World Championships 3
Company profile
Company: Rent Your Wardrobe
Date started: May 2021
Founder: Mamta Arora
Based: Dubai
Sector: Clothes rental subscription
Stage: Bootstrapped, self-funded
RESULTS
5pm: Maiden (PA) Dh80,000 2,200m
Winner: Arjan, Fabrice Veron (jockey), Eric Lemartinel (trainer).
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Winner: Jap Nazaa, Royston Ffrench, Irfan Ellahi.
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7.30pm: Maiden (TB) Dh80,000 1,600m
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THE BIO
Ms Al Ameri likes the variety of her job, and the daily environmental challenges she is presented with.
Regular contact with wildlife is the most appealing part of her role at the Environment Agency Abu Dhabi.
She loves to explore new destinations and lives by her motto of being a voice in the world, and not an echo.
She is the youngest of three children, and has a brother and sister.
Her favourite book, Moby Dick by Herman Melville helped inspire her towards a career exploring the natural world.
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Name: DarDoc
Based: Abu Dhabi
Founders: Samer Masri, Keswin Suresh
Sector: HealthTech
Total funding: $800,000
Investors: Flat6Labs, angel investors + Incubated by Hub71, Abu Dhabi's Department of Health
Number of employees: 10
MEDIEVIL (1998)
Developer: SCE Studio Cambridge
Publisher: Sony Computer Entertainment
Console: PlayStation, PlayStation 4 and 5
Rating: 3.5/5
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Herc's Adventures
Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5
bundesliga results
Mainz 0 Augsburg 1 (Niederlechner 1')
Schalke 1 (Caligiuri pen 51') Bayer Leverkusen 1 (Miranda og 81')
COMPANY PROFILE
Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others
THE SPECS
Engine: 1.6-litre turbo
Transmission: six-speed automatic
Power: 165hp
Torque: 240Nm
Price: From Dh89,000 (Enjoy), Dh99,900 (Innovation)
On sale: Now
The low down
Producers: Uniglobe Entertainment & Vision Films
Director: Namrata Singh Gujral
Cast: Rajkummar Rao, Nargis Fakhri, Bo Derek, Candy Clark
Rating: 2/5