Dubai International Capital (DIC), an investment agency for the ruler of the emirate, has bought a "significant" stake in Dubai-based luxury retailer Rivoli Group.

DIC, which manages as much as $7 billion of assets which include Britain's Travelodge hotel chain, said the investment is part of a strategy to support Middle Eastern, family-owned businesses looking to grow.

Rivoli, set up in 1988, operates 215 stores in five Gulf states, including the UAE, Kuwait and Qatar, selling goods such as luxury watches, eye glasses and writing materials, according to a DIC statement.

"DIC's regional strategy is focussed on supporting established family owned businesses that have an excellent track record of successful expansion and which possess attractive growth potential," DIC chief executive officer Sameer al-Ansari said in the statement.

DIC did not say how much of Rivoli it bought or how much it paid for the stake.

"The regional luxury good market is vibrant and continues to demonstrate favourable growth prospects, particularly for luxury watches," Ansari said. - Reuters