Posted by mylastresort in analysis.
Tags: Dubai, Dubai World, investment, MGM Grand, Sovereign wealth fund, uae
New Jersey regulators have given the state owned investment group, Dubai World, approval to increase its stake in MGM Mirage by as much as 20%. MGM Mirage is one of the largest, most popular casinos in Atlantic City, New Jersey. I’m surprised at the freedom allocated to UAE sovereign funds since no other Gulf country may publicly invest in the ‘forbidden’ industries. Dubai World is already the second largest shareholder in the entertainment firm.
In more recent news according to an IMF working paper, the UAE’s oil reserves could last 100 years at present output levels and fetch the country net wealth of $1.6 trillion.
Posted by mylastresort in analysis, sovereign funds.
Tags: Bader al-Saad, Citigroup, Europe, Germany, Invesment, Kuwait Investment Authority, Merrill Lynch & Co, Power, Sovereign wealth fund, UBS AG
The power held by the Kuwait Investment Authority is not one to be mishandled. Bader al-Saad, managing director, is really doing an impressive job and must commended. In a recent news report the KIA ‘warned’ Germany that it ‘may cut back’ its commitment to invest in Europes largest economy if the Berlin government regulates sovereign wealth funds. German politicians are fearful of the influence sovereign wealth funds can wield and their capacity to buy leading national companies or key national infrastructure.
“We still consider Germany an economic anchor in Europe, even in the world. We still like to invest in Germany. But in the future, any regulations on sovereign wealth funds in Germany could limit our engagement in your country… We are very surprised by the Germans fear of sovereign wealth funds. We have been in Germany for more than 45 years… We are very concerned”
– Bader al-Saad, managing director
Following Bader al-Saad’s remarks – AND TO PROVE THE KIA’s POWER – Peer Steinbrueck, German Finance Minister, is due to travel to Kuwait where he is expected to meet managers at the sovereign wealth fund to improve relations.
Details of the situation:
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The German government plans to extend existing legislation that gives Berlin a veto on takeovers of defence firms to include other industries, though Steinbrueck has said Germany does not want to scare off sovereign wealth funds.
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Steinbrueck has previously described the German plans to defend domestic firms as modest compared to those of other countries, including Britain, France and the United States.
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Soveriegn Wealth Funds control over $2 trillion (roughly the size of Frances economy) and are forecast to grow rapidly to $12 trillion by 2015.
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In recent months, funds from Asia and the Middle East have injected money into major banks like Citigroup, Merrill Lynch & Co and UBS AG after they were hit by exposure to the US subprime crisis.
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The Kuwait Investment Authority control 7% of German Automaker Mercedes-Benz (Long-term)
Charts & Numbers 