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.
DMCA has yet to respond to inquiries made by the World Maritime News.