Dubai World and Dubai Islamic Bank are launching a US$5 billion family of private equity funds to focus on global assets.
The funds, to be launched over the next 18 months, has seven private equity funds covering energy, financial institutions, infrastructure, property, health and education, general industrials and technology, media and telecommunications.
Dubai World is the holding company of Dubai Ports World, Free Zone Corp, Nakheel, Istithmar and Dubai Multi Commodities Centre among others.
While Norton Rose and Baker McKenzie will act as external advisers for the funds, Ernst & Young are auditors and the Bank of New York is the escrow agent.
Dubai World and Dubai Islamic Bank will be seed investors in each fund, in which blue-chip institutions are expected to participate. Returns are projected in the 20 per cent to 25 per cent range.
Initial contributions will represent about 30 per cent of commitments in each fund and future drawdowns will be conducted as they are needed.
Mohammad Khalfan bin Kharbash, the United Arab Emirates minister of state for finance and industry and chairman of Dubai Islamic Bank, said: 'The first few funds are expected to be raised during 2006.'
Each fund may also be partially listed within the first three years, a statement said.
Sultan Ahmed bin Sulayem, executive chairman of Dubai World, said: 'These funds will offer institutions and high-net-worth individuals an opportunity to acquire stakes in private companies that operate in some of the most strategic sectors globally.'