Dubai Maritime City Authority (DMCA) is considering setting up a USD 1 billion fund to boost investments in shipping and spur on Dubai’s maritime sector, Reuters cited sources familiar with the matter as saying.
The investment fund will be available to Dubai-based companies, the sources told Reuters.
DMCA has initiated discussions on the plan so far, and there is a possibility that the authority could issue a tender in the following months to hire an adviser.
The fund is not intended to serve as a replacement for bank financing, but could instead be used to aid the Dubai-based companies in buying vessels or financing initial public offerings and mergers.
The financing for the fund could be provided by either state-owned banks, private investors, or a combination of both, the sources said.
In any case, the loans provided would be guaranteed by the government.
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