DIC assets drop as much as $3bn amid crisis

PHENOMENAL OPPORTUNITIES: DIC's assets under management are now 'north of $10 billion', said Al Ansari (pictured). (Getty Images)

Dubai International Capital (DIC) has seen its assets under management drop by as much as $3 billion as the global financial crisis pushes down asset prices worldwide, its CEO said on Tuesday.

Speaking at a conference in Dubai, Sameer Al Ansari said DIC was previously managing assets worth $12-13 billion, but they were now "north of $10 billion".

Al Ansari said it was difficult to give an exact figure do to the volatility of markets and because 70 percent of DIC's portfolio was private equity.

DIC, owned by Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum, owns stakes in companies including Sony Corp. and HSBC Holdings.

Al Ansari said DIC would not be making any investments immediately due to the financial crisis.

"It's timing that will be absolutely crucial... I’m still not comfortable making some of the big bets we've made [in the past] as there is still a bit of uncertainty out there. It is a very volatile situation," he said.

However, Al Ansari said there would be "phenomenal" acquisition opportunities in the next one to two years as asset prices declined.

"There will be phenomenal opportunities over the next 24 months," he said.

"Asset prices are falling by the day and we have the opportunity to use our resources to diversify."

Al Ansari said he saw opportunities in emerging world economic powers Russia, China and India, as well as in the United States.

"There will be tremendous opportunities in the US in the next 12-24 months. We will continue to assess the situation and when it's the right time we will make investments," he said.

Al Ansari said there were "strategic reasons" why it would be good to work closer together with Russia, China and India.

However, he said DIC would have to evaluate before investing in Asian markets given the current economic climate.

He said in April it was shifting its focus away from Europe and North America towards emerging markets such as China and India.

Al Ansari said Gulf states needed to invest "wisely" given the current economic climate.

"Given the crisis we are in, the governments of this region have got to use these reserves wisely by investing in infrastructure projects in the region, creating employment opportunities and diversifying their economies by buying assets [abroad]," he said.

Gulf states have built up huge reserves in recent years on the back of record oil revenues and have been investing this money in assets abroad through state investment vehicles such as sovereign wealth funds (SWFs).

Al Ansari predicted SWFs would become increasingly important in the future "as we have the cash and liquidity".

"We are in a perfect position to use the resources we accumulated to do a lot of good for this region and the rest of the world," he said.

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READERS' COMMENTS

opportunities
Posted by ahmed on Tuesday 25 November 2008 at 18:14 UAE time


Asset prices are falling by the day and we have the opportunity to use our resources to diversify."

Where are the resources???

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