A Chinese investment bank setting up a $250 million fund for Dubai

A Chinese financial group is in advanced preparations to launch a Dubai-focused investment fund, highlighting global interest in a rebound in Gulf economies - the Financial Times is reporting.

First Eastern Investment Group, a Hong Kong-based group, is aiming for a $250 million fund, of which it will supply $50 million. First Eastern is in talks with Abu Dhabi investors to supply a further $50 million.

Just less than 2 years ago, the same First Eastern and Dubai International Capital tried to launch a $1 billion fund called "China Dubai Capital" to target opportunities in China. Quite a turn of events for China, and Dubai.