Outgoing Glaxo chief Garnier to lead Dubai fund's advisory board

JP Garnier, outgoing chief executive of GlaxoSmithKline, has agreed to join a newly formed advisory board of Dubai International Capital, the Middle East Emirate's $13bn sovereign wealth fund.

Mr Garnier, who will take up the position in January, will help DIC to seek out investments abroad.

The fund is the investment vehicle most often used by the Dubai government for foreign acquisitions, which have become a priority as it tries to diversify away from its dependence on oil revenues and establish itself as the financial centre of the Middle East.

In the past two months, the emirate has bought stakes in the London Stock Exchange, the US hedge fund giant Och-Ziff, the southern European private equity giant Marfin, and earlier this week, Sony Corp of Japan.

Mr Garnier will be one of three outside members on the new supervisory board of DIC's Global Strategic Equities Fund (GSEF), a $2bn fund set up this year. The goal of the fund is "to become a leading shareholder in pre-eminent global large capitalisation stocks, whilst aiming to create value through long-term exposure to a concentrated portfolio of undervalued companies."

In addition to the Sony and Och-Ziff holdings, GSEF has a minority stake in HSBC and a 3.12 per cent stake in the European aerospace group EADS. It is chaired by the DIC's head, Sameer al-Ansari.

Also joining the board are Helmut Panke, former chief executive of the motoring giant BMW, and Nobuyuki Idei, chairman of the advisory board of Sony. Politicians have called for greater regulation of sovereign wealth funds. The addition of Mr Garnier and the other high-profile corporate executives could help to ease regulator concerns.

All three appointees will advise on future DIC investments and provide key contacts for the still young fund.

"These are three very substantial appointments for GSEF, which reflect the global ambitions of the fund. All three have unrivalled experience in running blue-chip, worldwide businesses, and their industry expertise and international outlook will provide the fund with valuable insights," Mr Ansari said. The fund has "further large investments planned. I look forward to working with them in developing and diversifying the investment portfolio."

Mr Garnier has led GSK, the world's second largest pharmaceuticals company after Pfizer, since 2000. While at the helm he has faced down several controversies, including a shareholder revolt over his multi-million-pound pay package. He also recently unveiled a restructuring programme that will see thousand of jobs cut. He steps down from GSK in May next year.