UAE. The United Arab Emirates is eager to boost investment in the United States and sees good opportunities as the global financial crisis has cut the price of many companies, a senior UAE official said on Friday.
"A lot of these are great companies. There's nothing wrong with these companies....They have good returns," UAE Foreign Trade Minister Lubna al-Qassimi said in an interview.
"There would be no better time than now to actually take stock of some great investment opportunities and acquisitions of companies at a fraction of what they were worth months back," Qassimi said.
"Sometimes, people look at these like they are hard times. But for some people it's an opportunity."
She was echoing comments that Sultan Ahmed bin Sulayem, Chairman of the Dubai government-owned investor Dubai World, made on Thursday. Dubai is one of the seven emirates that comprises the UAE.
"Today there are things in the market worth a fraction of what they should be worth," Sulayem said.
Dubai World's assets include Dubai Ports World, which was at the centre of a political firestorm two years ago when U.S. lawmakers discovered the Arab company had acquired US port operations as part of its purchase of British company P&O.
To calm the furore, DPW sold the port assets to American International Group, the insurance giant which went to the brink of collapse this year and is now nearly 80% US-government owned.
The US Federal Reserve stepped in last month to rescue the insurer with a US$85 billion credit facility and subsequently provided an additional US$37.8 billion.
So, who now actually owns the port operations in New York, New Jersey, Philadelphia, Baltimore, New Orleans and Miami? Send me an e-mail when you know," Qassimi said with a smile. The UAE has no hard feelings over the controversy, which at least "made us famous," she said.
"For us, it was a business deal that went wrong because of the political climate at the time," Qassimi said. "We like to think we've learned from that."
Since then, UAE investment in the United States has grown and the government has taken care to try to address potential concerns before they arise, she said.
Last year, the Abu Dhabi Investment Authority purchased a 4.9% stake in Citigroup for US$7.5 billion.
"We may not have a lot of exports here, but we have exported capital. For us, it's the investment that really is the forte for us and that's where the balance comes in" trade relations with the United States, Qassimi said.
The wealthy UAE, which possesses 9% of the world's proven oil reserves and the fifth largest proven natural gas reserves, is the largest export market for the United States in the Middle East.
Last year, the United States enjoyed a US$10.3 billion trade surplus with the UAE, as exports to that country reached US$11.6 billion and imports from the UAE were US$1.3 billion.
Many of the goods UAE buys from the United are re-exported to markets in the Middle East, India and China, Qassimi said.
"The market for us is nearly 2 billion population because of the excellence of logistics that we have," she said.
There are now around 750 US companies with operations in the UAE, including many that have made the Emirates their regional headquarters.
"I think the number one reason is because it's a high-tolerant society," Qassimi said.
Source: http://www.bi-me.com/main.php?c=3&cg=4&t=1&id=26732US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/
