1970-01-01 08:33:28
Dubai International Capital LLC, a buyout firm that manages $13 billion, has said it plans to set up a $1 billion fund with Hong Kong-based First Eastern Investment Group targeting Chinese companies.
China Dubai Capital fund will invest in Chinese companies ranging from infrastructure and resources to healthcare, according to a joint press release. It will raise at least $500 million in May and is expected to reach as much as $1 billion in October, when the fund is closed, the release said.
China and the United Arab Emirates signed a memorandum of understanding in April 2007 to boost economic ties. Bilateral trade surged 41 percent to $20.4 billion last year, the press release said. UAE has 200,000 Chinese people and 2,000 Chinese companies.
"Chinese companies are very attracted by the opportunities arising from the opening up of the Gulf region," Victor Chu, chairman of First Eastern, said in the statement, adding that the fund will tap "the synergies between these two regions".
Dubai International's emerging markets division plans to manage more than $5 billion of assets in Asia, the Middle East and North Africa in the next three years, said Anand Krishnan, chief operating officer of the company, in the release.
First Eastern currently manages $1.5 billion dedicated to direct investments in China and has recently set up a Japan China fund.
The China Dubai fund will also invest in Chinese companies with the potential to be listed on the Dubai securities markets, the release said.
Source:China Daily/Agencies