STRATEGY


ICD builds on the strength of its broad portfolio to map out a strategy that maximizes return on its investments by:

  • Enhancing the value of existing portfolio companies through active portfolio management.
  • Deploying and recycling capital strategically for new investments and acquisitions, both locally and internationally.
  • Studying and selecting opportunities in industries that are either at the centre of Dubai’s strategic development plans or complementary to them.

CEO Message

As the principal investment arm of the Government of Dubai, ICD is uniquely positioned to identify the changing economic and social needs of Dubai. We operate an efficient and dynamic organization of dedicated professionals, balancing deep expertise with a focused investment strategy to create long-term value for our stakeholders.

Our interest is multi-sectorial as we span the globe to expand portfolio opportunities that complement and create synergies with our existing investments. Inspired and empowered by the vision and leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai, we work towards fulfilling Dubai’s potential and ensure its long-term stability and prosperity.

Within its portfolio, ICD has a strong base of commercially successful and globally renowned companies. Access to domestic and international funding allows us to shape and further grow our portfolio which includes many of Dubai’s flagship assets that straddle the major sectors of its economy. In 2015, we celebrated the 30th year anniversary of an ICD portfolio company, Emirates Airline; consistently voted the world’s top flying experience. Another ICD portfolio company, Emirates NBD, is today the largest bank in the UAE by total income and a total asset base of AED388 billion.

ICD provides the platform that supports its, now global, portfolio companies to set new benchmarks of excellence, for the benefit of both Dubai and the world economy. At the same time, we pursue strategic opportunities that will enhance our asset base.

We have a dynamic approach to asset allocation and investment. From a sectorial perspective, our current areas of focus include hospitality, and from a geographical one, Africa. We are investing in the global hospitality sector, adding value to economies local to our investments while growing the assets and brands of those investments.

As we look to expand and diversify, we know we are better served sharing knowledge. We look forward to building partnerships to share expertise and access to co-investment opportunities around the globe.

PORTFOLIO BREAKDOWN BY SECTOR*(%)

FINANCE & INVESTMENTS
33.4
TRANSPORTATION
18.2
ENERGY & INDUSTRIAL
17.4
REAL ESTATE & CONSTRUCTION
16.0
HOSPITALITY & LEISURE
12.3
RETAIL & OTHER HOLDINGS
2.7

*% based on book value as at Dec. 2014

INVESTMENT PROCESS

To identify new opportunities, our strategy is underpinned by four key pillars that evaluate the feasibility of potential investments.

ICD has institutionalized a risk management framework incorporating organizational structure, risk measurement, and monitoring methods within its investment processes by fostering risk-awareness and a balanced risk-taking approach.

New investment opportunities should fulfil at least three of the following criteria

  • Provide strategic benefits such as strategic synergies with ICD’s existing portfolio;
  • Belong to a sector or market considered to have long-term strategic growth potential and/ or have diversification benefits;
  • Be appraised on the viability of achieving an appropriate long-term risk-adjusted return;
  • Be conducive to adequate capital preservation, either commercially or structurally.

Beyond these pillars, ICD’s mandate is sufficiently broad to allow it to diversify its existing investments portfolio and deploy capital across any asset class, sector or geography.

Based on an on-going assessment of prevailing global and regional economic and financial market conditions, and prospective views on asset class performance, ICD periodically reviews and revises its capital deployment strategy for new investments, a strategy that also meet its stringent standards of good corporate citizenship.