The Dubai Investment Fund (DIF), one of the world’s largest investment companies by assets under management, has worked to strengthen its position in the global market by diversifying the types of investments it makes. carried out.

DIF is fully committed to adopting a balanced strategy, and the positive effects of this can be seen quite clearly in their returns. Even though shareholders have long known the importance of having a diversified portfolio, very few companies have implemented diversification across their entire business operations.

DIF’s portfolio, leadership and investment philosophy are all united by their shared commitment to diversification. The term “sound strategy” and “vehicle for investing in an assortment of securities or various financial instruments”. are the two ways of referring to diversification. The Financial Industry Regulatory Authority (FINRA) recommends that all consumers diversify their investment portfolios. Others simply adopt the strategy as part of their overall risk management strategy. 3M, The Disney Company and Berkshire Hathaway are just a few examples of some of the most diverse companies in the world.

DIF considers the impact that its investment decisions will have over the long term, which is one of the key factors that guides the fund’s investment thesis. Arguably, most investors in digital technology, sustainable energy, and healthcare are aware that short-term returns on investments are not guaranteed to occur immediately. However, DIF is firmly anchored in a long-term investment strategy. He does this by conducting his business with the accumulation of generational wealth at the forefront of his efforts. In finance, this tactic does not seem very common.

Looking back over the history of DIF, which spans more than twenty years, we understand how it evolved to become the global investment fund it is today. DIF is clearly committed to the long term, with nearly 2,600 employees and a global presence of 17 offices around the world. The first seven to eight years of the company’s history were ones of expansion, during which the company flourished. However, its trajectory changed dramatically in 2008, when it officially recognized the importance of diversification. The investment fund began to change the composition of its management team by methodically pairing seasoned professionals with aspiring professionals.

In 2008, DIF announced three main appointments for key positions within the company. Jason Williams has been appointed Chief Financial Officer and Head of the Finance Department of DIF, Mohammed Basma has been appointed Director of the Strategic Investments Department and Arthur McKinsey has been appointed Director of the Digital Innovation & Technology Department. That year marked a turning point with six major investment deals in emerging companies and stock purchases in TSMC and BP, all of which continue to pay dividends to this day.

In total, these investments were worth more than two billion dollars. Four of the six investment agreements have already been concluded. According to DIF, two other transactions are located in the Middle East and North Africa (MENA) region. The larger of these two will take about eight years to complete. The Dubai Investment Fund has a diversified portfolio across many sub-markets including Tunisia and Egypt. These investments include properties used for a variety of purposes, such as retail, medical, office, hotel, and mixed use. DIF owns intellectual property in several areas, including algorithms, digital marketing, data analytics and cloud computing, and has a portfolio in the technology and innovation sectors in the United Arab Emirates. Shares of Taiwanese semiconductor manufacturing giant TSMC have been added to DIF’s investment portfolio, resulting in a seven times higher return by 2020.

In 2011, DIF broadened the scope of its investment portfolio by extending to different asset classes and geographical locations. In addition, they diversified into new markets, many of which were then relatively unpopular. Their generational investment strategy has been bolstered by their investments in various infrastructure projects in the MENA region. During this period, DIF also invested in two European start-ups developing affordable solutions for end-users of renewable energies. In 2011, DIF made investments by buying shares of Samsung, Tencent and China Construction Bank. This was done to spread the risk associated with these investments.

In the years that followed, investors saw strong growth momentum in the value of Samsung and Tencent shares. At the same time, China Construction Bank’s price remained the same. Despite this, the Dubai Investment Fund retains its ownership of these holdings as it anticipates even higher returns over the long term.

DIF began its investment activities twenty-one years ago as a globally integrated company that serves many clients with endowments, foundations, family offices, sovereign wealth funds and private equity funds. pension. Now, the fund is looking at the data to better understand diversification opportunities. To achieve this objective, the DIF organized a two-day conference on the theme of diversified investments. Due to the huge success of the event, it will now take place twice a year.

Investment opportunities in the United Arab Emirates have recently caught the attention of financiers. Bloomberg reports that Dubai has become increasingly popular among hedge fund investors in recent years. This position was unequivocally validated in June when ExodusPoint Capital Management, widely recognized as one of the largest hedge funds in the world, registered its trades in the DIFC. Around the same time, Millennium Management announced that it had increased the number of full-time employees working at the DIFC to 30. Considering the company only got its license a few years ago, this is an impressive level of growth. The growth of hedge funds continues with the development of cryptocurrency companies, as well as Russian billionaires and real estate investors.

Sheikh Mohammed bin Rashid, vice president and ruler of the Emirate of Dubai, is the one who signed into law Dubai’s most recent legislation on July 19. According to the Dubai Media Office, the impetus behind the new law was to strengthen the emirate’s position as a “global destination for real estate investment”. Another factor that contributed to the passage of the law was the need to increase transparency for institutional investors. It is expected that additional incentives will attract more foreign funds. Following the new law, the Dubai Land Department initiated the creation of a register of real estate investment funds. For funds to take advantage of the new law, they must meet specific conditions. These requirements include maintaining an active portfolio of assets worth at least AED180 million ($49 million) and obtaining a license from the Dubai Financial Services Authority or the Securities and Commodities Authority within the DIFC. The value of residential properties has increased by 10% per year, that of apartments by 9% and that of villas by 19%. Based on these indicators, it seems likely that real estate funds will also show growth over the next few years.


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