Investment Corporation of Dubai

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Investment Corporation of Dubai
TypeGovernment Agency
Investment Corporation of Dubai
IndustryInvestment Management
FoundedMay 3, 2006
Headquarters
Dubai
,
UAE
Area served
Worldwide
Key people
Hamdan bin Mohammed Al Maktoum (Crown Prince of Dubai and Chairman)
RevenueAED 228 billion[1] (2019)
Total assetsAED 1,121 billion[1] (2019)

Investment Corporation of Dubai is a sovereign wealth fund of the Government of Dubai established in 2006,[2] with a mandate to manage the Government of Dubai's portfolio of commercial companies and investments.[3]

At the end of 2019, ICD reported assets worth US$305 billion[4] and revenue of $62 billion.[5]

History[]

ICD was set up on 3 May 2006 under Emiri decree 11 of 2006 issued by Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates (UAE), and ruler of the Emirate of Dubai.[6][7][8]

In 2007, the Government of Dubai transferred the majority stake in Emirates Bank International (EBI), National Bank of Dubai (NBD), Dubai World Trade Center, Emirates National Oil Company,[9] Emirates Global Aluminium, Borse Dubai, Emirates Airlines,[10] dnata and CBME to Investment Corporation of Dubai.[11] In the same year, the merger of EBI and NBD took place and Emirates National Bank of Dubai (ENBD) was formed with a market capitalization of more than $11.3 Billion.[12][13][14] The Government of Dubai transferred Dubai financial Market and Dubai International Financial Exchange to Borse Dubai which acquired interest in London Stock Exchange and Nasdaq OMX.[15][16] Minority stakes of Emmar Properties,[9][10] Dubai Islamic Bank, Commercial Bank of Dubai, Dubai Ice Plant & Cold Stores Company, and Dubai Development Company were transferred to ICD by the Government of Dubai.[2]

In 2009, the Dubai Government transferred Dubai Duty Free, Dubai Silicon Oasis Authority, Dubai Airport Free Zone Authority,[17] Emaratech, and Aswaaq to ICD. National Bond Corporation becomes a subsidiary of ICD in the year 2010.[18] In 2012 ICD acquired Smartstreams Technologies group limited and controlling stake in Dubai Aerospace Enterprise (DAE).[19]

In 2015, ICD acquired a controlling stake in South Korean construction firm Ssangyong Engineering and Construction,[20] Mandarin Oriental New York, and Washington DC hotel.[21][22] In 2016 ICD acquired Porto Montenegro Marina and Resort located in world heritage site Bay of Kotro from Montport Capital.[23][24] In 2017 ALEC engineering and Contracting Limited was acquired by ICD[2] and ISS Global Forwarding in 2018.[25] In 2019 DAE became a wholly owned subsidiary of ICD.[19]

Various other mergers and acquisitions were also held by other holding companies of ICD between the periods of 2007 - 2019.

In October 2017 ICD listed a $200 million Sukuk on NASDAQ Dubai. This was its second conventional bond listing on Nasdaq Dubai, after a $300 million bond was listed in 2014. In addition, ICD has two Sukuk, also commonly referred to as sharia compliant bonds, on Nasdaq Dubai, one worth $1 billion listed in 2017 and another worth $700 million listed in May 2014.[26][27]

In November 2019 ICD inked a deal with India-based Reliance to buy its stake in Reliance Nippon Life Asset Management Ltd.[28]

Governance[]

The Crown Prince of Dubai and Chairman of Dubai Executive council Sheikh Hamdan bin Mohammed bin Rashid al Maktoum is Chairman of ICD. Other position holders include Board Members.[29]

Portfolio[]

ICD's portfolio primarily includes businesses and assets either wholly and partially owned by the Dubai Government.[6][11]

Banking and Finance Services[]

Includes Emirates NBD,[11] Commercial Bank of Dubai (CBD),[25] Dubai Islamic Bank, Noor Investment Group, and National Bonds Corporation (NBC).[30] Includes ownership in financial markets held through Borse Dubai's controlling stakes in the DFM and NASDAQ Dubai.[2][31]

Transportation[]

Includes Emirates,[11] dnata, Flydubai and DAE[2]

Oil and Gas[]

Includes Emirates National Oil Company (ENOC)[32]

Industrial[]

Includes Emirates Global Aluminium, Dubai Holding, and DUCAB

Hospitality and Leisure[]

Includes Kerzner International Holdings Limited, Atlantis the Palm, The Royal Atlantis Resort & Residences and Dubai World Trade Centre, and Dubai Silicon Oasis Authority. Porto Montenegro located within the Bay of Kotor, Mandarin Oriental, New York, W Washington D.C. (Lifestyle hotel) One&Only Palmilla and One&Only Cape Town.[33]

Real Estate and Construction[]

Includes Dubai's Deira Enrichment Project undertaken by Ithra Dubai,[34] EMAAR and ALEC, Dubai Airport Freezone Authority (DAFZA), Cleveland Bridge & Engineering Company, Ssangyong Engineering,[25] Dubai Investments & Construction and Dubai Silicon Oasis Authority (DSO), ICD Brookfield Place, an equally owned joint venture partnership between ICD and Brookfield Property Partners.[35]

Retail and Other Holdings[]

Includes Dubai Duty Free,[2] aswaaq, a chain of supermarkets and community malls, Emartech (technology and consulting company), Emirates Rawabi, Dubai Multi Commodities Centre Authority, Dubai Global Connect (DGC)[9][36] ISS Global Forwarding and SmartStream.[37]

References[]

  1. ^ a b "ICD Portfolio". icd.gov.ae.
  2. ^ a b c d e f "ICD arm paid $2.2bln for AWAS leasing business, accounts show". www.zawya.com. Retrieved 2021-03-16.
  3. ^ "Investment Corporation of Dubai reports Dh25 billion net profit, up 16.9% year on year in 2019". gulfnews.com. Retrieved 2021-03-16.
  4. ^ "Dubai wealth fund readies bonds, COVID-19 may hit revenue". The Economic Times. Retrieved 2021-03-16.
  5. ^ "Dubai's sovereign wealth fund posts record $63bn revenue in 2018". Arabian Business. 26 June 2019.
  6. ^ a b "Investment Corporation of Dubai and its subsidiaries" (PDF). Ernst & Young report.
  7. ^ Dudley, Dominic. "The Middle East's 10 Biggest Sovereign Wealth Funds (For Now)". Forbes. Retrieved 2021-03-16.
  8. ^ Curzio, Alberto Quadrio; Miceli, Valeria (2010). Sovereign Wealth Funds: A Complete Guide to State-owned Investment Funds. Harriman House Limited. ISBN 978-1-906659-96-7.
  9. ^ a b c "ICD and Dubai South launch 'City of Trade' to connect global wholesale buyers and sellers". The National. 2020-09-21. Retrieved 2021-03-16.
  10. ^ a b Parasie, Nicolas (2014-09-08). "Dubai's ICD Invests $300 Million in Nigeria's Dangote Cement". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-03-16.
  11. ^ a b c d Neil, Halligan (1 July 2015). "Dubai sovereign wealth fund sees profits surge 62%". Arabian Business.
  12. ^ Fernandez, Manuel. "Emirates Bank International (EBI) merger with National Bank of Dubai (NBD) - A valuation perspective". researchgate.
  13. ^ "Top 10 mergers and acquisitions of the two decade - Top national-bank-dubai-nbd-and-emirates-bank-international-ebi-merger | Lists | Business Chief EMEA". www.businesschief.eu. Retrieved 2021-03-16.
  14. ^ "Emirates Bank International, NBD to merge". Khaleej Times. Retrieved 2021-03-16.
  15. ^ "Dubai Firm Acquires 20% Of Nasdaq". www.cbsnews.com. Retrieved 2021-03-16.
  16. ^ "Nasdaq to acquire OMX in deal with Borse Dubai". mint. 2007-09-20. Retrieved 2021-03-16.
  17. ^ "Investment Corporation of Dubai's 2019 profit jumps 17% on banking and transport investments". The National. 2020-05-20. Retrieved 2021-03-16.
  18. ^ "Investment Corporation of Dubai takes control of National Bonds". The National. 2011-03-10. Retrieved 2021-03-16.
  19. ^ a b "Dubai Aerospace Enterprise sells $750 million in five and a quarter years sukuk". The Economic Times. Retrieved 2021-03-16.
  20. ^ "Two Builders Invested in by Middle Eastern Funds Show Starkly Different Performances". Businesskorea (in Korean). 2017-05-10. Retrieved 2021-03-16.
  21. ^ Algethami, Sarah (8 April 2015). "Investment Corp of Dubai buys three international hotels". Gulf News. Retrieved 2021-03-16.
  22. ^ Sophia, Mary (2015-04-08). "Dubai's ICD Acquires Stakes In Three Hotels". Gulf Business. Retrieved 2021-03-16.
  23. ^ "Investment Corporation of Dubai buys Montenegro yacht resort". Gulf Business. 2016-05-08. Retrieved 2021-03-16.
  24. ^ "Investment Corporation of Dubai acquires Porto Montenegro Marina". Breaking Travel News. Retrieved 2021-03-16.
  25. ^ a b c "Investment Corporation of Dubai reports flat profit despite higher revenue". www.zawya.com. Retrieved 2021-03-16.
  26. ^ "Dubai's sovereign wealth fund lists $200m bond on Nasdaq". 18 October 2017.
  27. ^ "ICD's performance makes case for 10-year Saudi sukuk, investors say".
  28. ^ "UAE funds said to be in fray for Indian investment firm deal". Arabian Business. 25 February 2019.
  29. ^ "About ICD". Investment Corporation of Dubai. Retrieved 2021-03-16.
  30. ^ "ICD takes over National Bonds - Business - Economy and Finance - Emirates24|7". www.emirates247.com. Retrieved 2021-03-16.
  31. ^ "Dubai's investment arm ICD records first-half loss of Dh11.4b". Gulf News. 17 December 2020. Retrieved 2021-03-16.
  32. ^ "Dubai's ICD faces 'adjustment' in wake of pandemic downturn". Arab News. 2020-05-21. Retrieved 2021-03-16.
  33. ^ "One&Only reveals Urban Resorts in One Za'abeel". Arabian Business. 18 April 2018.
  34. ^ Oommen, Anup (27 October 2020). "Ithra Dubai completes The Link at One Za'abeel; eyes world record". constructionweekonline.
  35. ^ "Mayfair private members club to open in $1bn Dubai project". Arabian Business. 17 May 2018.
  36. ^ "Investment Corporation of Dubai launches Dubai Global Connect". Khaleej Times. 21 September 2020. Retrieved 2021-03-16.
  37. ^ "DGC begins operations at Studio Fuksas-designed visitor centre". Construction Week Online. 28 January 2021.

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