Showing posts with label foreign investment. Show all posts
Showing posts with label foreign investment. Show all posts

Monday, December 15, 2008

Dubai World unit acquires three South African wildlife reserves


Dubai: Dubai World Africa, the African subsidiary of Dubai World, said it has acquired major shareholdings in three of South Africa's major wildlife game reserves, expanding its presence in the region's tourism sector.

The acquisitions involved the Shamwari Game Reserve, Sanbona Wildlife Reserve and Jock Safari Lodge, which are members of the Mantis Collection, a group of five-star boutique properties in South Africa and Europe.

Dubai World did not disclose financial details of the acquisitions.

It said the three game reserves will enhance its portfolio of prime African properties, which include Cape Town's Victoria and Alfred Waterfront and the Pearl Valley Signature Golf Estate and Spa, the Kem-pinski Beach Resort and Residences in the Comoros, One & Only Zanzibar, Djibouti Palace Kem-pinski and Nyungwe, and Rwanda's Akagera National Park and Gorilla's Nest Lodge.

"Each resort is located on prime land with excellent development potential. The deal presents a growth opportunity for the South African economy," said Sultan Ahmad Bin Sulayem, chairman of Dubai World.

"Dubai World has long identified South Africa as a sound investment base. We see many good opportunities and we are here for the long term. As we have said earlier, the company intends to invest about $1.5 billion in Africa over the next five years," Bin Sul-ayem added.

Conservation company

He said the company is focused on "establishing a leading conservation-based company in South Africa".

James Wilson, CEO of Dubai World Africa, said both Shamwari and Sanbona are within the proximity of the popular tourism destinations of Cape Town and the Garden Route.

Wilson said an additional benefit of the deal is the gain of game management skills which will be applied elsewhere in the Dubai World Group.

Adrian Gardiner, founder of Shamwari and Mantis Collection, will continue as both managing director and shareholder of the three reserves.

The current management at Mantis Collection head office as well as all game reserve management and employees will remain in their positions, Dubai World said.


Story by http://www.gulfnews.com/articles/08/03/18/10198222.html

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Tuesday, November 18, 2008

World Pension Forum - Dubai

Strong and world class regulatory and corporate governance frameworks will ensure continued prosperity of the resilient UAE economy, according to Her Excellency Sheikha Lubna Al Qasimi, UAE Minister for Foreign Trade.

Welcoming delegates to the inaugural World Pension Forum, titled 'Pearls of the Gulf', Her Excellency Sheikha Lubna elaborated on the fundamental strengths behind Dubai and the UAE's growth story and highlighted the government's proactive measures during the global financial turmoil.

Hosted by Dubai Group, the leading diversified financial services company of Dubai Holding, the World Pension Forum in the Middle East opened in Dubai on 17 November, and will conclude on 20 November with a day's session in Abu Dhabi.

In her welcome address, Her Excellency Sheikha Lubna said: "From the government's perspective, I can tell you that nowhere else will you find a more open and welcoming business environment than in the UAE. We are part of the global economy, and despite the impact of the world financial crisis, the economic diversity of the Middle East, as evidenced in countries such as the UAE, will continue to underpin economic growth."

Sheikha Lubna emphasized that Dubai has now become a well recognized and growing financial hub with a successful and credible track record in attracting foreign investment, and encouraging entrepreneurship. Dubai's strategic position in relation to Europe, Asia and Africa, makes it the destination of choice for foreign direct investment in the region.

Around 18 companies out of top 50 in the Global Fortune 500 list such as GE, Citigroup, Samsung, Honda, Nissan, Siemens, HSBC, Deutsche Bank, Goldman Sachs and IBM have substantial operations in Dubai.

Other prominent speakers at the WPF included Soud Ba'alawy, Executive Chairman, Dubai GroupDubai Group, and Philip Schaefer, President of the World Pension Forum.

The forum in Dubai attracted more than 80 leading pension funds from the US, as well as government officials and senior executives of leading UAE companies. The forum is designed to facilitate the development of long term partnerships between the funds and the Middle East.

Offerings insight into the new patterns of global trade and people flows, the expanded role of sovereign wealth, and the execution of first-class infrastructure, the event also works as a platform giving UAE-based companies an opportunity to share their success stories with international delegates.

Founded in 1992, the World Pension Forum hosts various conferences around the world to help US pension fund managers make informed decisions and allocate funds to potential investment destinations.

Investors that are members of the World Pension Forum include CalPERS, CalSTRS, the Kennedy Family Trust, New York State Teacher's Retirement System, as well as major state pension funds and foundations.

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Sunday, November 2, 2008

UAE sees good investment opportunity in US

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=26732

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Monday, October 20, 2008

Sovereign Wealth Funds continue to acquire Western assets.

Some of private equity's most powerful tycoons, including Blackstone founder Steve Schwarzman, KKR's Henry Kravis and David Rubenstein of Carlyle Group, flew to Dubai last week to lure investors from the cash-rich Gulf states, it emerged this weekend. New research revealed that despite the credit crunch, sovereign wealth funds are continuing to snap up prime Western assets.

The funds, many of them based in the Middle East, spent more than €21bn (£16bn) acquiring stakes in European and US firms in the first six months of this year, suggesting they will match the €43bn invested in 2007, according to a study by the ZEW research institute in Mannheim.

Its findings point to a number of large recent investments, including €566m of Visa shares acquired by the Kuwait Investment Authority earlier this year, and the 20 per cent stake in the London Stock Exchange taken by the Qatar Investment Authority.

Brendan McMahon, a partner at PricewaterhouseCoopers and head of its private equity practice, said sovereign wealth funds were increasingly eyeing up private equity, too. 'Chinese funds have taken stakes in groups such as Blackstone. There has been speculation over deals with Apax. These funds have $3 trillion to deploy and private equity funds have diversified asset classes and jurisdictions. It is a perfect fit.'

Heather Stewart and Nick Mathiason - http://www.guardian.co.uk/business/2008/oct/19/privateequity

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Wednesday, October 15, 2008

Carlyle Group head says local firms will lead

DUBAI// Local private equity firms will take the lead in the Middle East and North Africa as the industry’s business model is forced to change due to the global financial crisis, says David Rubenstein, the managing director of The Carlyle Group.

“The world of private equity will change for many years as a result of the credit crisis and slowdown, and the entire industry will come under scrutiny over deals,” Mr Rubenstein told a conference in Dubai. “The Mena region will be affected by these changes in the United States and Europe, though the appeal of the MENA region is expected to increase. Some global players will enter the market, though local private equity firms will be most active.”

He added that private equity in the region would continue to be one of the most attractive market areas for global private equity despite a predicted slowdown in the industry in the next six to 12 months.

The Carlyle Group, a private equity giant, opened an office in the Dubai International Financial Center in Nov 2006 and also has regional operations in Cairo and Istanbul.

While Mr Rubenstein remained generally optimistic about the public’s perception of private equity during these distressed times, he said the most significant question to come out of the financial turmoil was whether or not the basic private equity business model would stay the same.

“It’s not clear whether the basic model we’ve had over the past 30 years, which uses much leverage, can be kept. It will be subject to much change and we’ll see changes in how general partners employ more equity, less debt and longer holding periods.”

The financial crisis has forced a number of hedge funds to collapse and brought down the traditional investment banking model; investors are left wondering if the private equity industry risks being next in line. Although experts surmise that the industry is strong enough to weather the crisis, most agree that the private equity industry will have to adapt.

“The financial world is being transformed in a stunning process; we can expect major consolidations in the financial sector, for one,” said Henry Kravis, a founding partner of Kohlberg Kravis Roberts.

Some firms are actively changing their business models to stay ahead of the curve.
“We are preparing to realign ourselves a little bit to capitalise more on opportunities that will arise as a result; it is definitely not business as usual,” said Zulfi Hydari, the managing director of HBG Holdings.

The opportunities for private equity in the Gulf, however, are becoming more lucrative compared to the US and Europe, and local and global players are confident about deal flow and fund launches over the next year, including Blackstone Group, the US-based private equity firm, which has plans in the pipeline to raise money from the region.

“There are so many wealthy people here and companies that are expanding rapidly and looking to put money in areas of the economy that are relatively small compared to the wealth here,” said Steve Schwarzman, the chief executive of Blackstone.

By Sara Hamdan
shamdan@thenational.ae

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Tuesday, October 14, 2008

Dubai's Istithmar World opens New York office

In a move highlighting the company’s global approach to investment and its growing focus on exceptional opportunities worldwide, Istithmar World, the investment arm of Dubai World, headquartered in Dubai, has opened its second international office in New York City.

New York will serve as the third major base for Istithmar World after Dubai and Shanghai, China. Istithmar World, which already has an active asset portfolio in the United States, will continue to target attractive investment opportunities with a vision to establish itself as the premier global investment firm from the Gulf region.

Commenting on Istithmar World’s rapidly growing global footprint, H.E Sultan Ahmed Bin Sulayem, Chairman, Dubai World, said: “Opening an office in New York is a natural evolution of our growing presence in the Americas and demonstrates our commitment and enthusiasm for the region. We already have a solid asset base in the US and Canada, and through Istithmar World’s corporate presence in a dynamic city like New York, we look forward to expanding our portfolio further.”

David Jackson, Chief Executive Officer of Istithmar World Capital, said: “Our base in New York City provides us a solid platform and hub from which we can build and develop our regional investment activities and network. The current global market conditions have opened up many windows of opportunity for us. We believe that a permanent presence in the region will provide us better insight into potential investment opportunities in the Americas while enabling us to add greater value to our portfolio companies here in the US, Canada and in the future, elsewhere in the Americas.

“Our vision is to establish ourselves as the premier sophisticated investor from the Gulf region among the business community in the US. We continue to be excited by the opportunities in this market and plan to source investment opportunities in the Americas in line with our strategies for the specialised sectors in which we have made investments: consumer, industrial and financial services and real estate.”

The New York office has been designed by renowned US-based interior designer Nate Berkus, and interior architect Ahmad Sardar Afkhami, who have drawn strong influence from traditional Islamic architectural design elements in creating the office interiors. The design of the office innovatively incorporates conventional Islamic patterns, by using all the key shapes and structures individually and fusing it to produce a space that highlights classic style, while maintaining contemporary functionality.

The Prince George Ballroom located in Manhattan’s Madison Square North Historic District, also prominent for its architectural and artistic splendour and its non-profit nature of business was the venue for the office opening ceremony, the proceeds of which will be extended to support various charity initiatives.

The investment team at the New York office will be headed by Felix Herlihy, Chief Investment Officer, and John Amato, Chief Investment Officer of Istithmar World. Herlihy and Amato provide over 35 years of investment and advisory experience and have been serving in their respective positions at Istithmar World Capital since 2006.

In November 2007, Istithmar World purchased a majority stake in Barneys New York from Jones Apparel Group in a deal worth US$825 million. In August 2008, Istithmar World and Dubai World affiliate Nakheel purchased a 20 per cent stake in Montreal-based Cirque Du Soleil. In April this year, Istithmar World acquired a majority stake in Gulf Stream Asset Management LLC, a leading US-based institutional asset manager, which manages over US$3.8 billion of corporate credit portfolios for global institutional investors

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JPMorgan buys stake in Dubai Mercantile Exchange

Dubai's fledgling oil exchange is getting another big-name investor with the addition of US banking giant JPMorgan Chase. 

The company, which recently acquired fallen investment house Bear Sterns and US bank Washington Mutual, joins Goldman Sachs, Morgan Stanley, a subsidiary of Royal Dutch Shell and three energy trading firms as minority shareholders of the exchange. 

Details about the bank's stake were not made public, but it represents only a fraction of the exchange's overall value. The government of Oman and Tatweer, a company controlled by the ruler of Dubai, own 75 percent of the Dubai Merc. 

The exchange has struggled to generate significant trading volume in its futures contract for Middle East sour crude oil. 


Saturday, October 11, 2008

Iran and the UAE Sign $2Bln Gas Deal

Iran and the United Arab Emirates' Crescent Petroleum signed a $2 billion deal to export natural gas from Iran's Salman field to the Persian Gulf country.

The Wall Street Journal reported that the two sides signed the 25 year, $2 billion natural gas deal on Friday.

The agreed price of $5 per million British thermal units of natural gas is reportedly four times the price Crescent pays for gas from Qatar, and more than five times the average weighted price for gas in the Middle East and North Africa.

Despite a recent decline in world oil prices, gas prices in the Persian Gulf states, particularly the United Arab Emirates, are on the rise. With the number of factories soaring and energy consumption following suit, the demand for natural gas is growing in the country.

The UAE is the fourth largest oil producer in the Organization of Petroleum Exporting Countries but it is in need of clean energy imports to fuel its rapid industrial growth.

"Natural gas is a fuel of choice for clean and efficient power generation," said Majid Jafar, Crescent's executive director.

The original agreement between Iran and Crescent, a shareholder in the United Arab Emirates energy firm, Dana Gas, was signed in 2001.

Technical problems and the failure to agree on a gas price led to extensive delays in negotiations. Following domestic debate in 2006, Iran argued for an increase to the proposed gas price in the agreement, citing a sharp rise in international gas prices from the time the original contract was agreed.

Iran, which has the world's second largest natural gas reserve after Russia, has spent around $1.5 billion on the Crescent project to date, and the country has built a 174-mile undersea pipeline linking Iran's Salman offshore gas field to Crescent's gas-processing facilities in Sharjah.

Iran, which sits on the world's second largest reserves of both oil and gas, is facing US sanctions over its civilian nuclear program.

Iranian officials have dismissed US sanctions as inefficient, saying that they are finding Asian partners instead. Several Chinese and other Asian firms are negotiating or signing up to oil and gas deals.

Following US pressures on companies to stop business with Tehran, many western companies decided to do a balancing act. They tried to maintain their presence in Iran, which is rich in oil and gas, but not getting into big deals that could endanger their interests in the US.

Yet, after oil giants in the West witnessed that their absence in big deals has provided Chinese, Indian and Russian companies with excellent opportunities to signing up to an increasing number of energy projects and earn billions of dollars, many western firms are slowly losing reluctance to invest or expand work in Iran.

Some European countries have also recently voiced interest in investment in Iran's energy sector after a gas deal was signed between Iran and Switzerland regardless of US sanctions.

The National Iranian Gas Export Company and Switzerland's Elektrizitaetsgesellschaft Laufenburg signed a 25-year deal in March for the delivery of 5.5 billion cubic meters of gas per year.

The biggest recent deal, worth €100m ($147m, £80m), was signed by Steiner Prematechnik Gastec, the German engineering company, this month to build equipment for three gas conversion plants in Iran. This is at a time when France's Total, Royal/Dutch Shell and Norway's Statoil have put on hold their shares in multi-billion dollar contracts.

Washington and its Western allies accuse Iran of trying to develop nuclear weapons under the cover of a civilian nuclear program. Iran denies the charges and insists that its nuclear program is for peaceful purposes only.

Tehran stresses that the country has always pursued a civilian path to provide power to the growing number of Iranian population, whose fossil fuel would eventually run dry.

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Friday, October 10, 2008

Foreign Direct Investment in Lebanon up by 4 Percent

BEIRUT: A UN report released Thursday showed that Lebanon witnessed growth in investments and Arab capital inflows by approximately 4 percent to $2.845 billion in 2007.

The World Investment Report 2008 (WIR 2008), which was issued by the Geneva-based UN Conference on Trade and Development, was made public during a news conference at the UN House building in Beirut.

Key speakers at the conference were Ali Berro, director of quality program at the Lebanese Economy and Trade Ministry. Khaled Hussein, first economic affairs officer at the UN Economic and Social Commission for Western Asia.

Berro commented on the impact of the current global economic crisis on Lebanon and the country's position, among other countries in the region, in attracting foreign investment in 2007, according to the facts stated under the WIR 2008.

Berro said it is still very early to determine the impact of the crisis on the Arab region in general and Lebanon in particular. "But it is possible to say the Arab oil-producing countries might be negatively affected more than other countries. As for Lebanon, it will probably be least affected as a result of its small economy and limited stock-exchange activity," he added.

According to the WIR 2008, Berro said "Lebanon maintained its fourth position among the Arab countries in attracting investments in 2007 compared to 2006, after ranking third in 2005, second in 2004 and first in 2003."

Hussein, meanwhile, spoke about investment in the Arab region. He said foreign direct investment (FDI) in Arab countries increased 17 percent in 2007 to $72.4 billion.

Saudi Arabia came in first, with FDI reaching $24.3 billion in 2007, up 33 percent from 2006. The United Arab Emirates came in second with $13.3 billion, Egypt third with $11.6 billion and Lebanon fourth with $2.8 billion.

The Daily Star
- Lebanon

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Wednesday, October 8, 2008

Abu Dhabi’s investment in AMD ensures a new plant near Albany, New York

Now's the time to recall why Advance Micro Devices Inc., isn't just an important company, it's a critical one. If it wasn't for AMD, we might still be writing stories about the latest, greatest 32-bit x86 servers.

The news is that AMD is splitting off its manufacturing company in an $8 billion investment deal from Abu Dhabi. The general view by analysts is this: AMD has been struggling and separating its manufacturing helps to strengthen its ability to focus on chip development.

Foreign firms that own manufacturing capacity here employ millions of U.S. workers, and it is government policy to encourage this investment. But foreign investment can also help with the transfer of technology and manufacturing capability outside the U.S.

The investment by Abu Dhabi is very different from something like Belgium-based InBev NV/SA's $52 billion purchase of Anheuser-Busch Cos. You can brew beer at home and dream big. But you need billions to start a chip company and change a market. Abu Dhabi's is taking a key role in a fundamental part of the tech economy, and by extension, U.S. economy.

Competition routinely forces tech vendors to change paths and develop better products, but rarely do the stories get as good as AMD's assault on Intel’s x86 universe.

In April 2003, AMD released Opteron, its first 64-bit x86-compatible server chip. It gave users the ability to run 32-bit and 64-bit x86 applications on the same chip.

Intel didn’t have anything like it. Hewlett-Packard Co. was focusing on Intel's Itanium as its 64-bit platform. It rejected Opteron as an “unnecessary complication” to its strategy.

Until Opteron, the x86-world was at risk of turning into a Soviet-style planned economy.

As Computerworld writer Russell Kay pointed out in a 2004, "the industry-leading vendors had stunningly misread what the market wanted …"

And did they ever.

The high performance computing users –- the fastest upgrading club in the world –- jumped on Opteron. They immediately recognized the chip’s capabilities and its perfect fit for Linux.

The business users were right behind and big server vendors, including HP, responded with Opteron-based servers. Customers wanted them.

In 2004, in New York City in the Rainbow Room, Hector Ruiz, chairman of AMD, met with analysts and press to talk about the chip. This was a great time for AMD.

Ruiz called Opteron a "wrecking ball" aimed at guess what?

But Opteron wasn’t a wrecking ball. It was a life saver. It gave customers new options and forced Intel to react and improve. Intel is better company today because of AMD.

Abu Dhabi’s investments ensure that a new fabrication plant near Albany New York will be built, no small thing in this economy. Oil money is the only money flowing right now. The country has already invested heavily in AMD and the two are now tightly linked. Will that turn out to be the best for competition and the U.S.?

The economic problems will eventually recede and the more fundamental issues will emerge overtime, namely whether the U.S. will retain intellectual and manufacturing capital in this critical sector of its economy. AMD is critical to keeping competition in the chip market, and so now is Abu Dhabi. That's the new reality today.

Patrick Thibodeaux Computer World

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Tuesday, October 7, 2008

Abu Dhabi investors in (AMD) Advanced Micro Devices

The world's number two microprocessor maker, Advanced Micro Devices Inc., is splitting into two in order to shore up its financial position and to better compete with its main rival, Intel Corp.

The Sunnyvale, Calif.-based company announced on Tuesday that it was spinning off its manufacturing operations into a new company called Foundry Co., a joint venture with Advanced Technology Investment Co., an entity backed by the Persian Gulf state of Abu Dhabi.

Advanced Technology Investment will pay $2.1 billion US for its stake in Foundry and will also assume $1.2 billion of AMD's existing debt. The company also plans to invest another $3.6 billion US and $6 billion US in Foundry over the next five years to expand its chip-making capability, which will include a new plant in New York State.

AMD will control 44.4 per cent of the company while Advanced Technology Investment will control 55.6 per cent. AMD senior vice-president Doug Grose will become chief executive officer of Foundry.

Once the spinoff is complete, AMD will focus on design and development of chips, similar to how "fabless" companies such as Nvidia Corp. work.

Abu Dhabi's investment company, Mubadala Development Co., will also double its current stake in AMD to 19.3 per cent with a new investment of $314 million.

The deal, which will require regulatory approval, is expected to close in the beginning of 2009.

AMD has been hurting since it acquired Markham, Ont.-based graphics chip maker ATI Technologies in 2006 for $5.4 billion US. As part of the deal, AMD acquired ATI's cellphone and television divisions, both of which were underperforming. AMD ended up writing down the value of its acquisition by $876 million US.

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Sunday, October 5, 2008

Abu Dhabi-based company to invest $11.5 billion in Real Estate projects

Abu Dhabi: Abu Dhabi-based Al Maabar International Investments has lined up overseas investments worth $11.5 billion (Dh42.2 billion) over 10 years, its managing director said on Monday.

The investments will be in real estate projects in Morocco, Libya, Tunisia, Qatar, Belarus and Jordan, said Yousef M. Al Nowais.

"Our focus is international and our mandate is to develop projects outside Abu Dhabi. Two of our overseas projects are already on the ground - in Morocco and in Libya," Al Nowais told a news conference.

"These are to be immediately funded. The rest of the projects are long-term - they are now either under initial master plan or are going into detail design," Al Nowais said.

He said $1 billion will be spent over the next three years for developing Al Maabar's overseas projects. "We have secured the funds. The funding of our projects is by our stakeholders and others. There's no immediate need for us to raise money on the capital markets," Al Nowais added.

The estimated construction cost of the projects include $618 million for Morocco, $300 million for Libya, $1.3 billion for the first phase of development in Tunisia, $380 million for Qatar, $500 million for Belarus and $8.3 billion for Jordan, Al Nowais added.

Al Maabar also unveiled at the news conference its plans for a mixed-use waterfront development in Aqaba, Jordan. The 3.2-million square metre development will include the relocation and modernisation of the port facilities of the strategically-located Red Sea city and development of the mixed-use waterfront infrastructure.

The project in Jordan will have high-rise residential towers, a retail district, recreational and entertainment districts and several branded waterfront hotels and resorts, Al Nowais said.

"The Jordan project is scheduled to be completed in two phases. The first phase is expected to be completed in 2013 and the second in 2017," a statement from Al Maabar said.

Al Nowais said Al Maabar's Bab Al Bahr mixed-use project in Morocco will be completed in three years and construction will start this month.

Joint venture

Construction has started on the Libya project - Al Waha - and will be developed over a four-year period, he said.

The Libya project is a 50-50 joint venture between Al Maabar and Libya Investment & Development Company (Lidco).

Al Nowais said their project in Tunisia - Bled Elward - will be developed over a 20-year period.

Two sites

For the first phase I of the project that will have a development area of 300 hectares, the construction works are to be carried out over five years.

As for Belarus, he said, Al Maabar has identified two sites in Minsk for development.

Al Maabar was formed in September 2006, as a strat-egic joint venture among five of the largest Abu Dhabi-based real estate developers - Aldar Properties PJSC, Sorouh Real Estate, Reem Investments, Reem International and Al Qudra Holdings.

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Saturday, October 4, 2008

Foreign investment and Business opportunities for US Companies in Libya.

United States Department of State - Libya

DEPARTMENT OF STATE
[Public Notice 5464]
Rescission of Determination
Regarding Libya
In accordance with section 6(j) of the
Export Administration Act of 1979 (50
U.S.C. App. 2405(j)), and as continued
in effect by Executive Order 13222 of
August 17, 2001, I hereby rescind the
Determination of December 29, 1979
regarding Libya (Public Notice 1264).
This action is based upon the
considerations contained in the
memorandum accompanying
Presidential Determination No. 2006–14
of May 12, 2006, [71 FR 31909]
This rescission shall also satisfy the
provisions of section 620A(c) of the
Foreign Assistance Act of 1961, Public
Law 87–195, as amended (22 U.S.C.
2371(c)), and section 40(f) of the Arms
Export Control Act, Public Law 90–629,
as amended (22 U.S.C. 2780(f)).
Dated: June 30, 2006.
Condoleezza Rice,
Secretary of State, Department of State.
[FR Doc. E6–11046 Filed 7–12–06; 8:45 am]

September, 2008 US Secretary of State Condoleezza Rice's visit to Tripoli, Libya on September 4, and the settlement of outstanding US and Libyan compensation claims, clears the way for more US firms to enter the Libyan market. Interest from foreign investors and businesses in opportunities in Libya is as high as ever.

The Libyan economy is driven by the oil and gas sector accounting for 95% of the country’s export revenues. Economic reform is a top priority for the Libyan government, despite the complexities of Libya policy-makers.

Opportunities exist for US Companies in a wide range of sectors including:

Oil and Gas Services
Refining
Transport
Engineering Services

Construction - Housing – 70,000 units per year.

Road and Bridge construction, including 1400 miles of road upgrades.

Seaports Modernization

Construction of schools and hospitals

Tourism – growth in hotel construction is forecast to increase the number of beds to 10,000 by 2010 as part of a US$7 billion tourist development plan.

Airports Construction – a new terminal at Tripoli International Airport and the construction of a new airport in Benghazi are a priority

Power and electricity – the power sector is set to double in terms of output from 4,700MW to 9,700MW within the next five years at a projected cost of US$7.5 billion
Desalination and Water Treatment –

Water and sewerage projects – US$6 billion has been allocated to waste water systems and management.

Information Technology
Education and Training
Manufacturing
Tourism
Consulting
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US Export Council 2008

The US Export Council provides assistance to American firms seeking access to international export markets in the Gulf States, Middle East and http://www.usexportcouncil.com/

Friday, October 3, 2008

Arab sovereign funds likely to buy US assets

Arab sovereign wealth funds (SWFs) are likely to pounce on distressed US assets after the government bail-out plan eases the extraordinary tensions in financial markets, according to one of the top intermediaries in the Gulf.

Gary Long, president of Investcorp, the private equity group which channels petrodollars from some of the biggest private and institutional investors in the Gulf and invests them in western markets, said private investors and sovereign wealth funds were taking a different attitude to the Wall Street meltdown.

Wealthy private investors, "shell-shocked" by the crisis in the US financial system, were now expected to become more cautious and conservative. But institutions, including sovereign wealth funds, will be looking for opportunities.

"Institutional investors recognise that after a period of turmoil there will be a time when market opportunities will be great, so they are seeing what's happening as such a period," Long told the Financial Times.

"But it's hard to hide if you're a [private] investor. Every market is embattled: even the local stock markets, even real estate markets have been questioned. So private investors are going to be a little more conservative as opposed to chasing high returns," he added.

In recent weeks, the Middle East's SWFs, flush with oil-fuelled liquidity, have been remarkably quiet as some of the US financial stocks they had rushed to rescue over the past year were devastated by the global crisis.

Facing pressure at home, the $200 billion (Dh734 billion) Kuwait Investment Authority last week revealed that it had lost $270 million on its Citibank investment but recorded no losses on its investment in Merrill Lynch, which has been bought by Bank of America. The KIA had ploughed $5 billion into the two banks in January.

American institutions scouring the Gulf for capital have also been rebuffed, according to regional bankers.

Sovereign funds are not in the business of bailing out faltering banks, they were told, particularly at a time when they were under domestic pressure to intervene at home and shore up tumbling equity markets that were suffering from a spillover effect of the global turmoil.

Reasonable valuations

But people close to some of the region's sovereign wealth funds say that while they do not want to be seen as white knights, they are not sitting on the sidelines.

"Now the crisis is being dealt with, once that phase is mapped out, it will take years to bring back balance to the market and assets will be available at more reasonable valuations. So if you have cash it could be an interesting opportunity," says one person close to the $50 billion Qatar Investment Authority.

Long, meanwhile, said he expected sovereign wealth funds also to join hands with private equity firms in investing in distressed US assets. This year one Gulf fund set up a $1 billion partnership with Investcorp to buy mezzanine debt related to US commercial property.

"The bigger sovereign wealth funds have always had most of their investments through intermediaries," he said.

By Roula Khalaf, Financial Times

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Tuesday, September 30, 2008

Investors see South Africa as too risky

JOHANNESBURG, SOUTH AFRICA -- It was a bit like a mouse trying to calm a herd of frightened elephants.

With both the world financial markets and South Africa's political scene in turmoil, the country's new president went on national TV Sunday promising to avoid any sharp changes in economic policy.

The morning after  Motlanthe's speech, the rand currency slid even further. Investors are shunning emerging markets as just too risky.

A speech by Reserve Bank chief Tito Mboweni on Sept. 18 starkly exposed South Africa's vulnerability to the global economic turmoil. About 18 billion rand ($2.16 billion) has flooded out of the country so far this year as foreigners sold off stocks.

Motlanthe this month replaced President Thabo Mbeki, who was forced out by his African National Congress. Motlanthe is widely seen as a caretaker for ANC leader Jacob Zuma, who is likely to win the post in elections next year.

South Africa, an economic powerhouse in sub-Saharan Africa, exports commodities such as platinum, gold and diamonds. When the subprime crisis hit, South Africa initially weathered the storm well because its banks weren't exposed to the bad mortgage-related debt. But now it is suffering the secondary effects.

"We are seeing less capital being available in emerging markets generally and in particular South Africa," said Jac Laubscher, economist at Sanlam, a financial services group. "The fact we have a current-account deficit in excess of 7% means the financing of that current account becomes more of an issue, and there is a possibility of downward pressure on the rand."

Gold traditionally is a refuge for investors in time of turmoil, and the increase in gold prices is good for South Africa. But even more important to its economy is platinum, and its price has slumped about 50% since March.

"Platinum has overtaken gold as our most important export, and the platinum price has halved," Laubscher said, adding that increases in the gold price were unlikely to compensate.

South African gold trader Charles Leishman of Standard Bank said gold was being traded emotionally; platinum's price was falling because of weak industrial demand.

"They're actually very distinct, given the environment we're in the moment. [Platinum] is very demand driven. Gold at the moment is very emotionally driven.

"Nobody knows how long it [the global credit crisis] is going to go on for. You can inject all these billions of dollars but is that going to take the toxic sludge out of the system?"

By Robyn Dixon, Los Angeles Times Staff Writer 
September 30, 2008

http://www.latimes.com/news/nationworld/world/la-fg-africaecon30-2008sep30,0,3829996.story

US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/

Four Companies in bid to build Iranian Pipeline

Four companies, two from Iran and one each from Europe and Asia, are bidding for the contract to build the 1,800km pipeline by 2014 under a Build-Own-Operate deal, Kasaeizadeh said.

A Build-Own-Operate contract gives rights to develop, finance, design, build, own, operate and maintain the project.

"Two Iranian contractors are ready to do it as a Build-Own-Operate deal and two foreign companies. This is new, for a foreign company to do a Build-Own-Operate contract for gas pipelines," Kasaeizadeh said in his last interview as head of NIGC before taking up the top post at National Iranian Gas Export Company (NIGEC).

The contract will be awarded to one Iranian company and one foreign company or the two Iranian bidders may form a consortium with one of the international firms, he added, speaking at the NIGC headquarters in Tehran.

Iran is moving ahead with the plan to export some of its vast gas resources to Europe via pipeline.

The new, Iranian Gas Trunkline 9, or IGAT-9, would be part of the planned 'Persian pipeline' project that aims to transport gas from South Pars to the city of Bazargan at the border with Turkey and on to Italy, Austria and Switzerland, according to Kasaeizadeh.

The South Pars field, which has an estimated 436tn cu ft in gas reserves, is located offshore Assaluyeh, a port town in Iran's southern Bushehr province, in the Persian Gulf.

Alternatively, Iran may pump the gas to Europe via the 3,300km Nabucco pipeline, which aims to pipe 31bn cu m a year of gas from the Caspian region, the Middle East and Egypt to Europe through Turkey, Bulgaria, Hungary, Romania and Austria.

Talks about Iran's participation in the scheme are still ongoing. But potential Iranian involvement in Nabucco and alternative plans for gas exports to Europe are facing stiff resistance from the US, which is seeking to curb international business with Tehran.

Iran, which sits on the world's second largest reserves of both oil and gas, is facing US sanctions over its civilian nuclear program.

Iranian officials have dismissed US sanctions as inefficient, saying that they are finding Asian partners instead. Several Chinese and other Asian firms are negotiating or signing up to oil and gas deals.

Following US pressures on companies to stop business with Tehran, many western companies decided to do a balancing act. They tried to maintain their presence in Iran, which is rich in oil and gas, but not getting into big deals that could endanger their interests in the US.

Yet, after oil giants in the West witnessed that their absence in big deals has provided Chinese, Indian and Russian companies with excellent opportunities to signing up to an increasing number of energy projects and earn billions of dollars, many western firms are slowly losing reluctance to invest or expand work in Iran.

Iran is seeking the participation of foreign firms in its IGAT-9 scheme in a bid to secure partial funding for the project due to its exorbitant cost, Kasaeizadeh said.

"The reason we want help from them is more to obtain financing. For this pipeline, we have 17 compressor stations. Each compressor station has around 4 turbo compressors. The cost of each station is around $100mln," he said.

The cost of the pipeline is also driven up by the difficult territory it's crossing, notably mountainous areas, Kasaeizadeh added.

The Iranian companies that will be involved in building the pipeline will be able to tap the country's Foreign Currency Reserve Fund, Iran's version of an oil stabilization fund, for funding, he said.

The fund "does not give loans to the Iranian government but they give loans to the private sector. It means that the Iranian private sector can get loans and build the lines," Kasaeizadeh said.

Kasaeizadeh said sanctions won't hinder Iran's plans. "Sanctions have not had any effect on our work. It is possible that it affects work in other places, but it has not had any effect on our work."

NIGC has already secured access to raw materials required to build its pipelines, having signed import contracts before a set of stricter sanctions was imposed on the country, he said.

"We have a long-term contract with European companies. Because our contract was already signed and just now we are working on it together, we have had no problem because it was before the sanctions," Kasaeizadeh said.

"We manufacture the pipeline in Iran. We only have to bring the raw materials from outside. Large pipes are carbon steel for which we get the raw materials from abroad," he added.

NIGC also has contracts with European companies for the supply of turbines and compressors, needed to pump the gas over long distances through the pipeline.

"One contract we have got is with Siemens. Another contract is with Ukrainian companies such as Zorya Mashproekt and Sumy Frunze NPO," he said.

Some European countries have also recently voiced interest in investment in Iran's energy sector after a gas deal was signed between Iran and Switzerland regardless of US sanctions.

The National Iranian Gas Export Company and Switzerland's Elektrizitaetsgesellschaft Laufenburg signed a 25-year deal in March for the delivery of 5.5 billion cubic meters of gas per year.

The biggest recent deal, worth €100m ($147m, £80m), was signed by Steiner Prematechnik Gastec, the German engineering company, this month to build equipment for three gas conversion plants in Iran. This is at a time when France's Total, Royal/Dutch Shell and Norway's Statoil have put on hold their shares in multi-billion dollar contracts.

Washington and its Western allies accuse Iran of trying to develop nuclear weapons under the cover of a civilian nuclear program, while they have never presented any corroborative document to substantiate their allegations. Iran denies the charges and insists that its nuclear program is for peaceful purposes only.

Tehran stresses that the country has always pursued a civilian path to provide power to the growing number of Iranian population, whose fossil fuel would eventually run dry.

Despite the rules enshrined in the Non-Proliferation Treaty (NPT) entitling every member state, including Iran, to the right of uranium enrichment, Tehran is now under three rounds of UN Security Council sanctions for turning down West's illegitimate calls to give up its right of uranium enrichment.

Tehran has dismissed West's demands as politically tainted and illogical, stressing that sanctions and pressures merely consolidate Iranians' national resolve to continue the path.

The UN sanctions address individuals and companies involved in nuclear- and arms-related activities without banning daily trade and non-nuclear investment.

But the US has imposed unilateral restrictions in particular on financial transactions and big investments.


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US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/

Saudi Arabia fetched the highest Foreign Direct Investments among the GCC states

Bahrain's attractive investment climate and the capacity to absorb maximum foreign investments in all vital sectors have put the Kingdom at the top in terms of investment performance among the GCC countries by the World Investment Report 2008, a senior UN official who launched the WIR 2008 in Manama yesterday said.

Nazha Benabbes Taarji, Director of Investment Promotion at the United Nations Conference on Trade and Development (UNCTAD) in a pre-launch interview of WIR 2008 highlighting the salient features of Bahraini's economic climate said in the Kingdom the FDIs in 2007 performed at its optimum level and benefits shared by the entire spectrum of the economy.

She lauded the steps taken by the Bahraini authorities by attracting more FDIs as well as opening up many areas for foreign investors as part of a strategic move.

Talking about the GCC economic climate Nazha Benabbes Taarji said the record oil revenues and excess liquidity which runs into trillions of dollars has bolstered the region's overall economic strength and made it a preferred region for foreign investors. The robust economic growth in West Asia in general and the GCC in particular contributed towards a sustained growth in flow of foreign investments.

Shaikh Mohammed bin Essa Al-Khalifa, Chief Executive of the Bahrain Economic Development Board said:

"This report reflects the great strides Bahrain has made towards modernising and liberalising our economy, with substantial investment in creating sustainable industries and economic activities such as the automotive, telecoms and financial services sectors. Bahrain is proud of its record as a leading destination for business and finance. It is the gateway to the Middle East and we will continue to forge a diverse, vibrant economy fully equipped for the demands of the world economy in the 21st century."

Saudi Arabia fetched the highest foreign direct investments among the GCC states and the Kingdom ranked top recipient in the World Investment Report 2008 with a total size of $24 billion FDIs out of total $43 billion attracted by the GCC in 2007.

The level of foreign direct investment flowing into all six GCC states increased by 30 per cent in 2007 from the previous year at $43 billion and overall in the Middle East and North Africa (MENA) region, FDI increased by 12 per cent to $71 billion, even though Iraq, Jordan, Lebanon, Syria and Yemen saw a drop in this figure by 20 per cent to $6.4 billion.

Bahrain's position as a regional leader for foreign investment has been confirmed after it was ranked number one in the GCC, and 12th globally, for inward foreign direct investment performance in the "World Investment Report 2008" announced today at the United Nations Conference on Trade and Development in Geneva.

Bahrain - internationally recognised as having the most open and liberal economy in the Middle East - was rated above fellow GCC states of UAE, Qatar, Oman, Saudi Arabia and Kuwait by the 2008 World Investment Report, which ranks countries by the Foreign Direct Investment they receive relative to their economic size.

The Economic Development Board and MENA OECD Investment Center hosted the regional launch last night of the (UNCTAD) World Investment Report 2008 titled Transnational Corporations and the Infrastructure Challenge. The report is published annually to analyze foreign direct investments (FDI) in countries.

The report was launched in Manama at a press conference held at the Diplomat Radisson SAS Hotel and Spa where Dr Abdullah Al-Sadiq, Vice Chairman of MENA Investment Centre gave the opening speech on behalf of Dr Supachai Panitchpakdi, Secretary-General of UNCTAD. Present were Nazha Al Taraji, Director of Investment Promotion at UNCTAD, amongst board members of the MENA Investment Center and Bahraini economists.

The report showed that Bahrain attracted $1.756 billion in FDI in 2007 and the Kingdom was ranked 2nd in the Gulf and 9th globally in the Outward FDI performance index. The index is based on factors such as ease of conducting business and the improvement of infrastructure in a country.

The World Investment Report also highlighted the increase in local investment which is growing more rapidly than foreign investment as countries wisely utilize surplus oil revenues to develop and improve their economies.

The roots of Bahrain's success lie in its unique social and economic attributes: the Kingdom's economy is recognised as the most free and diverse in the Middle East and its society as the most liberal, together with its strategic location in the Gulf allowing rapid access to Qatar and Saudi Arabia and strong trade links with booming South Asian economies. Bahrain is ideally suited to foreign companies looking to access lucrative Gulf markets It is distinctions such as these and its skilled Bahraini workforce and cost competitiveness that make Bahrain a primary destination for foreign business, foreign investment and expatriates.

By Mahmood Rafique Business Correspondent

http://www.zawya.com/Story.cfm/sidZAWYA20080925032453/Bahrain%20tops%20in%20investment%20performance%20among%20GCC%20countries


THE US EXPORT COUNCIL PROVIDES ASSISTANCE TO US FIRMS SEEKING ACCESS TO INTERNATIONAL MARKETS, EXPORTS, JOINT VENTURES AND CAPITAL. http://usexportcouncil.com/

Monday, September 29, 2008

Libya to build Aluminium Smelter


The world's top aluminium firm United Company Rusal has signed an agreement with Libya to build an aluminium smelter in Libya with an annual capacity of 600,000 tonnes, reported AP. The parties also have agreed to build a 1,500 megawatt gas power station to supply energy to the smelter. The natural gas for the complex will be supplied by the National Oil Company of Libya under a contract intended to last at least 30 years. UC Rusal was formed in March 2007 by a merger between Russian producers Rusal and Sual, and the assets of Switzerland-based commodities trader Glencore.


THE US EXPORT COUNCIL PROVIDES ASSISTANCE TO US FIRMS SEEKING ACCESS TO INTERNATIONAL MARKETS, EXPORTS, JOINT VENTURES AND CAPITAL. VISIT US AT WWW.USEXPORTCOUNCIL.COM

Abu Dhabi Investment Company and Union Bank of Switzerland Infrastructure Fund

The ADIC-UBS Infrastructure Investment Fund is currently bidding for four multi-billion dollar infrastructure projects including the Aqaba Port Redevelopment in Jordan, an independent power and water plant in Saudi Arabia, a sewage treatment plant in Bahrain, and a schools project in Egypt, reported Khaleej Times. Abu Dhabi Investment Company and Union Bank of Switzerland launched the infrastructure fund early this year, to invest in the expanding infrastructure in the MENA and Turkey. The fund will take up to a $100m equity stake in a 3,000 megawatt power project in Saudi Arabia worth $3.5-4bn.

Sunday, September 28, 2008

Iraq signs deal with General Electric


Iraq has signed preliminary deals worth billions of dollars with General Electric Co and Siemens for equipment to almost double electricity generation capacity, an energy official said on Saturday. The deals with GE, Siemens and a third company would be worth a total of $7 billion to $8 billion, Iraq’s Electricity Minister Karim Waheed told Reuters. Years of war, sanctions and neglect have battered Iraq’s power grid and the country suffers chronic power shortages. The capital Baghdad receives only a few hours of electricity a day. The deals would mark a big step in the country’s reconstruction, Waheed said. “These deals will help us to end the electricity supply problem by 2012,” Waheed said on a private visit to the United Arab Emirates.

Iraq signed a memorandum of understanding (MOU) earlier this month for US giant General Electric to supply turbines to generate 6,800 megawatts of power, Waheed said. He declined to say how much Iraq would pay GE for the equipment, but said each megawatt would cost between $700,000 and $800,000. That would give a value of between $4.8 billion and $5.4 billion. The country has signed a second MOU with Germany’s Siemens to supply equipment to generate another 2,000 MW, he added. That deal would be worth between $1.4 billion and $1.6 billion. Baghdad was negotiating with a third company for another 1,000 MW, he said, declining to give further details. The three deals would enable Iraq to add around 10,000 MW to installed capacity by around 11,000 MW. Damage to the power stations, lack of maintenance and drought mean Iraq’s actual power production is well under capacity at around 5,500 MW. Demand stands at around 11,000 MW, Waheed said.

Iraq plans to approach engineering, procurement and construction (EPC) firms to build the plants once the deals are signed, he added.


While big international companies were still reluctant to send people to work in Iraq, improvements in security had improved Baghdad’s chances of attracting companies to undertake the work, he said.
Iraqi oil officials will meet Russia’s Technoprom Export on Oct 12 to review a $124 million deal to repair 400 MW of power generation capacity in the southern city of Basra.

The World Bank will fund the deal, he added.


The deal was one of several frozen after the US-led invasion of Iraq in March 2003. Iraq is also negotiating with Russia’s Power Machines to revive another old deal to build two plants with 160 MW of capacity each in Iraq’s north, he added.


Iraq signed a deal with GE for three power plants worth $480 million in June.

September 27, 2008