DEFINITION of Investment Corporation Of Dubai (ICD)
The Investment Corporation of Dubai (ICD) is a government-owned investment organization that manages a sovereign wealth fund for Dubai, United Arab Emirates. The ICD's mandate is to generate investment returns while also benefiting the emirate of Dubai. The fund has a portfolio of both local and international assets across 50-plus countries.
Investment Corporation Of Dubai (ICD)
BREAKING DOWN Investment Corporation Of Dubai (ICD)
The ICD was established in May 2006 by transferring the assets from the Dubai Department of Finance's Investment Division to the newly formed entity. The ICD is now invested in a wide array of business sectors, including the financial sector, transportation, utilities and energy, industrial firms, real estate and hospitality. It is governed by board of directors and does not hold itself to any specific asset class, sector or geographical area.
The stated values of the ICD are excellence, commitment, sustainability, integrity and respect. The ICD uses a four-pillar investment strategy, and new investments must meet at least three of the following criteria:
The investment must provide strategic benefits and synergies with ICD’s current portfolio
The company must belong to a sector known to have long-term growth potential or diversification benefits
The investment must have the ability to achieve long-term risk-adjusted return
The company must promote adequate capital preservation, either commercially or structurally
The strategy also employs active portfolio management and focuses on distributing and recycling capital for new investments and acquisitions. Additionally, the ICD aims to select investments in industries that are central to or complement Dubai’s strategic development plans. When broken down by sector, the ICD invests most in finance and investment companies, and when broken down geographically, the fund is invested mostly in Europe and the Middle East.