Wealth fund invetments in West to grow

Dubai Group, an investment firm owned by the ruler of Dubai, expects sovereign wealth funds to invest more in US and European financial services companies which need funds, Emirates Business reported on Thursday.

"Sovereign wealth fund money will continue to flow to the US and Europe in the coming years as financial institutions will continue to need liquidity," Tom Volpe, Dubai Group chief executive officer said, according to the newspaper.

Emirates Business is also owned by ruler Sheikh Mohammed Bin Rashid al-Maktoum.

Concerns over the motives of state investment agencies will dissipate, Volpe said. Abu Dhabi Investment Authority (Adia) and the Kuwait Investment Authority (KIA) are among sovereign wealth funds which have invested billion in banks such as Citigroup and Merrill Lynch.

"People are really sensitive to it right now but I think that apprehension will start to disappear over time," Volpe is quoted as saying.

Dubai Group, which is targeting at least 20% returns, has been buying up stakes in financial services companies and owns shares in Greece's Marfin Financial Group as well as Oman's Bank Muscat. (Reuters)

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Posted by Donnell Greer, est Vancouver, Canada on Thursday 27 March 2008 at 20:01 UAE time


It is interesting to note companies like this willing to invest funds into various financial service companies. However, how does a legitimate and profitable project, with better than a 20% return, gain direct contact to the heads of such funds? The usual chain of unqualified greedy intermediaries often present too many road blocks both financially and information wise, to ever reach the decision makers at the top of the investment world. Moreover, particularly in North America, history proves that most so called “bankers” lack the understanding and vision to recognize good projects in any case. The current financial situation attests to that.

Yrainucep Development Corp is a Canadian company tired of the intermediaries’ game.

Donnell Greer, President

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