Dubai, the oil-rich Gulf state, has launched a new multi-billion pound sovereign wealth fund as it looks to extend its reach in the global economy. Sunday Telegraph

The fund, which at present is called the Investment Corporation of Dubai will, if all goes well. acquire a big stake in Inmobiliaria Colonial, the Spanish property group. Recently Dubai tabled an offer to buy an 85% stake for about €9bn.

Dubai is investing heavily in assets in industrialised and developing nations worldwide. Last month DIC said it planned to invest about $5bn (£2.5bn) in China, India and Japan over the next three years. Over the past four months Middle Eastern sovereign wealth funds have invested an estimated $18bn (£8.9bn) in Europe and the US.

It is unclear whether the new fund will invest in any particular type of asset, company or country.