The Investment Corp of Dubai has acquired a stake in Kerzner International. ICD is the sovereign wealth fund of the emirates, reported Reuteres.
The acquisition offered Dubai authority in the second major luxury hotel company, following Jumeirah Group, as the country’s economy has been dependent on its thriving tourism industry.
In a statement on Thursday, CEO of ICD Mohammed al-Shaibani said, "This investment reaffirms ICD's commitment to support the long-term growth of our domestic hospitality market, a key pillar of and growth sector for the Dubai economy."
Kerzner International was established by billionaire Sol Kerzner. The company is the manager of Atlantis and One & Only chains of resort. The locations of the resort stretch to Mexico from South Africa. However, the company has redirected its focus in Dubai following its active tourism industry.
The size of the stake acquired was not disclosed by ICD. The company only referred to the acquisition as “significant” and did not give details on how much it paid for the stake. However, a source told Reuters that the acquired stake was around 46 percent.
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