Gulf investors eyeing US despite Dubai Ports - IIF
Wed Jun 6, 2007 4:33pm ET
KUWAIT, June 6 (Reuters) - Gulf investors will continue to seek U.S. investments even though U.S. lawmakers had derailed Dubai Ports' purchase of U.S. port facilities, a financial institution official said.
Howard Handy, a director of the Institute of International Finance (IIF), said Saudi Basic Industries Corp.'s <2010.SE> $11.6 billion buy of General Electric Co.'s plastics unit showed that Gulf investors were still looking at firms across the Atlantic.
"That is double what the Dubai World Ports deal was worth. We are going to see more and more of these things," he told reporters late on Wednesday.
State-owned Dubai Ports World bought the facilities at six U.S. ports as part of a $6.8 billion purchase of Britain's P&O but it later said it would sell the U.S. assets after American lawmakers said they had security concerns about the deal.
According to a recent study by the IIF, a global association of financial institutions, the United States has attracted more than half of the capital from the Gulf in the past five years.
Handy said Gulf investors would continue to invest in the United States but would also gradually increase exposure to Asia, Europe and the Middle East.
"There are a lot more investments going on at home than in the past. There will be probably some increasing diversity in outflows but probably no dramatic changes in the future but gradual changes," he said.
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