Gulf investments in US

hpaulson_full.jpg
1 of 9
US Treasury Secretary Henry Paulson (pictured) said on Monday that the US was open to investment by sovereign wealth funds (SWFs) and private foreign companies in a move to allay concerns over the increasingly protectionist rhetoric coming out of the US. ArabianBusiness.com takes a looks at the recent history of Gulf investments in the US and the reaction to them. (Getty Images)
dp-world_full.jpg
2 of 9
DP World Chairman Sultan Ahmed bin Sulayem speaks during a news conference in Dubai. In easily the biggest confrontation between a SWF and the West, Dubai-owned DP World was forced to sell US port terminal operations it acquired through its takeover of UK-based P&O in 2006 amid a political firestorm that the deal posed a threat to American national security. (Getty Images)
p&o_full.jpg
3 of 9
DP World sold the US assets of P&O to AIG Global Investment Group. The operations at six major US seaports in New York/New Jersey, Philadelphia, Baltimore, Miami, Tampa and New Orleans were valued at approximately $700 million, but DP World did not disclose the sales price. (Getty Images)
wall-st_full.jpg
4 of 9
The reaction of US lawmakers to the DP World deal was in stark contrast to their response to Gulf SWFs when they came to the rescue of several major Wall Street banks hit by the subprime mortgage crisis and ensuing credit crunch. (Getty Images)
citigroup_full.jpg
5 of 9
Desperately in search of capital, Citigroup was the first major US bank to turn to SWFs for an emergency cash injection as writedowns from the subprime mortgage crisis began to mount. Citigroup sold a $7.5 billion stake to the Abu Dhabi Investment Authority (Adia) in November, and then received $3 billion from the Kuwait Investment Authority (KIA) in January and an undisclosed amount from Saudi Prince Alwaleed bin Talal, the bank's largest individual shareholder. (Getty Images)
merril_full.jpg
6 of 9
Merrill Lynch in January accepted a $2 billion cash injection from the KIA at the same time as Citi received its capital boost from the wealth fund to cope with massive writedowns due to the subprime crisis. Both the investments in Citi and Merrill were broadly welcomed by US lawmakers. Due to the seriousness of the financial crisis gripping the country there was no repeat of the scenes when DP World acquired US port terminal operations. (Getty Images)
nasdaq_full.jpg
7 of 9
Other state-owned companies have also been investing heavily in the US with little opposition from the government. The US government in January cleared a deal that will give Dubai's state-owned Borse Dubai a 20% stake in US stock exchange Nasdaq. Nasdaq will in turn take a 33% stake stake in Dubai International Financial Exchange (DIFX), which will be rebranded with the Nasdaq name and licensed to use Nasdaq and OMX market technology. (Getty Images)
park-ave_full.jpg
8 of 9
Gulf funds and companies have also been investing heavily in US real estate, which has slumped in the wake of the subprime crisis. Bahrain-based investment bank Investcorp in January bought a Park Avenue office property in New York for $1.4 billion from Dubai state investment agency Istithmar. Dubai's Zabeel Investments has also said it is looking at real estate in the US. (Getty Images)
Las-Vegas2_full.jpg
9 of 9
The hospitality industry has also been a focus for Gulf investors. Dubai World bought a stake in casino operator MGM in August last year, initially taking a 4.9% ownership which was increased to 9.4% in February. Dubai World unit Nakheel has signed a $375 million deal with US group Fontainebleau Resorts for a 50% stake in the company's Miami Beach resort. (Getty Images)