Dubai International Capital (DIC), an investment arm of Dubai Holding, and First Eastern Investment Group, a Chinese private equity firm, on Monday launched a $1 billion (Dh3.67bn) fund that will invest in Chinese companies and may list them on Dubai securities markets.
The new fund, China Dubai Capital, will invest in Chinese companies, which could create synergies with the UAE’s economic growth. China Dubai Capital will invest in a wide range of sectors, including infrastructure, resources, healthcare and services.
The first closing of the fund will take place in May this year, with at least $500 million from investors predominantly in Asia and the Gulf Co-operation Council. The final closing of the fund is expected to take place in October, bringing the fund up to $1bn.
Sameer Al Ansari, Executive Chairman and Chief Executive Officer of DIC, said: “Through China Dubai Capital, we will invest in feasible and profitable business opportunities in commercially attractive sectors.
“The establishment of China Dubai Capital provides investors the opportunity to participate in a vehicle that will generate superior returns.”
Victor Chu, Chairman of Hong Kong-based First Eastern Investment Group, said, “This fund will act as a catalyst to bring more capital from the Gulf into China.”
China Dubai Capital is an important initiative of DIC’s Emerging Markets division. Anand Krishnan, Chief Operating Officer of DIC, said: “Our stated objective is for DIC’s Emerging Markets division to manage assets in excess of $5bn in Asia, the Middle East and North Africa region in the next three years.”
China Dubai Capital is expecting that it can generate higher returns by moving ahead of rivals. The fund is targeting deals in the range of $20m to $50m for each investment.
DIC and China firm set up $1 billion fund