By Nathan Layne
Dubai International Capital plans to tap rapid growth prospects of India, China and Japan over three years.
Dubai International Capital, an investment fund owned by the ruler of Dubai, said it planned to invest about $5 billion in China, India and Japan over three years as a play on the rapid growth of emerging markets.
The fund's chief operating officer, Anand Krishnan, also told a news conference on Tuesday that the fund could raise its stake in existing holdings like Sony and was looking for potential investments in other Japanese shares.
Krishnan said Dubai International plans to raise its assets under management to $25-30 billion in the next three to four years from $13 billion now, estimating that India, China and Japan could make up one-fifth to one-sixth of the total.
"I would think the three countries in the next three years would take a share possibly of about $5 billion," he said.
Krishnan said the fund was searching for opportunities in Japan's auto industry and other sectors, such as entertainment, that have channels to growing demand in emerging economies.
"Clearly because of the growth in emerging markets, we believe companies having exposure to emerging markets will grow significantly as well," he said.
He added that the fund would be open to raising its stake in Sony as it would with other major holdings, such as HSBC Holdings and Netherlands-based aerospace company EADS.
Dubai International said in November it had made a "substantial investment" in Sony but did not disclose the size of the stake.
"More stock in Sony? If it makes sense for us from a returns perspective and we can get it at the right pricing, absolutely. We would look at any one of the stocks that we have invested in," Krishnan said.
Dubai International Capital is the investment arm of Dubai Holding, which is owned by Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum. (Reuters)