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Sat 4 Apr 2009 10:27 AM

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UK bank to advise on Dubai's $10bn fund

Rothschild to assist with qualification and long-term viability of companies applying for fund.

UK bank Rothschild has been hired to advise on Dubai’s $10bn financial support fund of five-year bonds, which it launched at the beginning of last month to assist companies struggling with the financial slowdown, it was reported on Saturday.

The Dubai Department of Finance has appointed Rothschild in an advisory capacity on the fund $10bn fund that will go mainly to assist state-linked companies, especially in the real estate sector, which have been hit hard by economic crisis.

Rothschild's provides investment banking, porporate banking and private banking services to governments, corporations and individuals worldwide.

It will assist the Dubai government in determining the process of qualification for the fund, provide a strategic overview of its use, monitoring its use and recovery.

It will also offer advice on the long-term viability of companies helped by the fund, with a view to protecting stake-holder value, according to UAE daily Gulf News. "The establishment of the fund will be an important step towards bringing greater stability and confidence to the revised business plans of our state-affiliated entities, especially in the real estate sector. This will provide benefits across the economy of Dubai,” said Nasser Al Shaikh, director general, Dubai Department of Finance.

"I am confident that with the addition of Rothschild's expertise we will put in place an independent and rigorous process of qualification and oversight for the fund, which will help our businesses achieve their full potential beyond the near term challenges," he added.

The fund will still be wholly owned by the Dubai Department of Finance and controlled by the Supreme Fiscal Committee of Dubai.

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