Published on ShanghaiDaily.com (http://www.shanghaidaily.com/)
http://www.shanghaidaily.com/sp/article/2008/200811/20081117/article_380887.htm
Dubai says now is not the time to invest
Created: 2008-11-17
THE head of an investment company owned by Dubai's ruler said yesterday that now is not the right time to invest more of the fund's money in ailing United States and European markets.
Sameer al-Ansari, executive chairman and chief executive of Dubai International Capital, said at a business leaders' conference in Dubai that he believes the world is heading into "a deep recession" that could last two to three years.
As a result, he said the fund would be "extremely conservative" and focus on protecting its existing US$12 billion in assets.
"Frankly speaking, I don't want to invest right now," al-Ansari said. "It's not the time to be brave and go out there and try to hit the bottom of the market."
As their financial systems crumble, Western political leaders and investors are increasingly looking to wealthy state-controlled funds for aid despite concerns about their relative lack of transparency. Senior US and British officials courted the funds and the governments that run them during recent visits to the Gulf.
The oil-rich region's funds injected much-needed cash into US and European banks as the financial crisis started to unfold last year but have been largely quiet in recent months as the economic downturn worsened and the value of their foreign investments plummeted.
Finding the right balance could prove tricky. Leaders in the region are eager to protect growing domestic economies from financial turmoil elsewhere but understand they cannot fully insulate themselves from the downturn and the effect of tumbling energy prices.
"We cannot afford to see the Western financial system collapse," said John Sfakianakis, chief economist at SABB, the HSBC Holdings PLC affiliate formerly known as Saudi British Bank. "It is in our national interest to see that the Western financial system is open and healthy."
Sameer al-Ansari, executive chairman and chief executive of Dubai International Capital, said at a business leaders' conference in Dubai that he believes the world is heading into "a deep recession" that could last two to three years.
As a result, he said the fund would be "extremely conservative" and focus on protecting its existing US$12 billion in assets.
"Frankly speaking, I don't want to invest right now," al-Ansari said. "It's not the time to be brave and go out there and try to hit the bottom of the market."
As their financial systems crumble, Western political leaders and investors are increasingly looking to wealthy state-controlled funds for aid despite concerns about their relative lack of transparency. Senior US and British officials courted the funds and the governments that run them during recent visits to the Gulf.
The oil-rich region's funds injected much-needed cash into US and European banks as the financial crisis started to unfold last year but have been largely quiet in recent months as the economic downturn worsened and the value of their foreign investments plummeted.
Finding the right balance could prove tricky. Leaders in the region are eager to protect growing domestic economies from financial turmoil elsewhere but understand they cannot fully insulate themselves from the downturn and the effect of tumbling energy prices.
"We cannot afford to see the Western financial system collapse," said John Sfakianakis, chief economist at SABB, the HSBC Holdings PLC affiliate formerly known as Saudi British Bank. "It is in our national interest to see that the Western financial system is open and healthy."
Agencies
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