Istithmar chief snubs US

PUT OFF: Istithmar World Ventures is looking for deals "everywhere but the US", bin Fahad said. (Getty Images)

Dubai government investment agency Istithmar World Ventures has been “put off” looking for deals in the US and instead will seek new opportunities in Africa and the Far East, according to its CEO.

“I am looking at everywhere but the US,” Ahmed bin Fahad told magazine Arabian Business on the sidelines of the World Economic Forum (WEF) on the Middle East, in Sharm El Sheikh, Egypt.

“[We are] being invited by so many places to come, and being given concessions and the privilege to take opportunities without even an auction. We don’t get that in the States, and it has put me off looking in the US.”

His remarks follow Sunday's speech to the forum from US President George W. Bush, who told around 1,500 delegates that the US will “continue to welcome foreign investment and trade”.

“There are voices in my country that urge America to adopt measures that would isolate us from the global economy,” Bush said. “I firmly reject these calls for protectionism. The US will stay open for business.”

Istithmar World Ventures is a subsidiary of Istithmar World, which is part of state-owned conglomerate Dubai World. Dubai World owns DP World, a container port handler that was forced by US lawmakers to sell US assets over security concerns.

“There are still a lot of untapped opportunities related to natural resources and financials in Africa and Far East Asia,” bin Fahad continued.

“These are all places where there is a really nice hedge from the rest of the world, and that you can really extract a lot of value.

“We want to be there as first mover in certain areas where we can provide value and [will] be welcomed and considered and appreciated - this is a big thing for us,” he added.

Bin Fahad also revealed that Istithmar World Ventures is aiming to double the value of its assets under management by the end of the year.

“We are looking to double in terms of the value of assets under management, but in terms [of the value of] acquisitions we would love to triple [from last year],” he said, adding that details of how this might be achieved would be announced in September.

Dubai World, whose business include property developer Nakheel, has a multi-billion dollar global portfolio, including P&O, US retailer Barney's, a stake in lender Standard Chartered, and about $20 billion in real estate assets outside Dubai.

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READERS' COMMENTS

Istithmar Chief Snubs US
Posted by Wasiullah, Mumbai, India on Wednesday 21 May 2008 at 02:08 UAE time

I think its high time that someone really speaks out the heart. Thank you Mr. Fahad for being so candid. It's surprising to see comments here which are suggesting Lobbying, which in other terms can be called bribing/ arm-twisting at best.

I think its time to move away from non-performing debt-ridden countries and the US is now far away from being a profitable venture. Brand USA brings images of ENRONs, Bear-Sterns, ML and many more in the offing.

Istithmar chief snubs US
Posted by Neil Hickman, Dubai, UAE on Tuesday 20 May 2008 at 09:11 UAE time


What does 'appreciation' mean? Are Istithmar scared of a level playing field and competing in an open and free business environment? Dubai World handled the P&O debacle wonderfully from a PR and general diplomatic perspective that made them look professional and sincere, these sort of comments from istithmar can only damage future business as there is nothing positive that can come out of them.

Istithmar chief snubs US
Posted by Dr Nicola Evoli, Shotesham, UK on Monday 19 May 2008 at 19:20 UAE time


I do not think these statements are either wise or profitable for such ambitions. I suggest Mr Bin Fahad to look at better options such as lobbying in USA, in the same style APAC (Israel) and Prince Bandar (KSA) did and are still doing. Verbal arguments bring no joy. USA is still a formidable power to do business with and not to snub. Bad accident...poor diplomacy yet. I admire UAE and Dubai, it is time to get better on these skills.

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