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US rules may deter sovereign funds, says UAE central bank governor
Source: BI-ME and Reuters , Author: BI-ME staff
Posted: Thu August 28, 2008 12:00 am

UAE. Restrictions by the United States and others may lead sovereign wealth funds to invest closer to home instead of in the West, the head of the central bank for the United Arab Emirates was quoted as saying on Thursday.

According to a document in bullet-point form quoting UAE central bank governor Sultan Nasser al-Suweidi, such a scenario would trigger a "a new regional developmental cycle" in the Middle East.

"Regulations regarding SWF might lead to ... fund becoming more passive investment vehicle or change direction of investment flows," according to the document, presented at a Japanese business conference held in Dubai.

Sovereign wealth funds such as the UAE's Abu Dhabi Investment Authority (ADIA), the world's biggest, have poured billions of dollars into ailing banks and firms in the industrialised economies in recent years.

Analysts estimate that ADIA has around US$300 billion in assets.

US Treasury officials have been analyzing sovereign wealth funds more closely of late due to their mounting investment clout, especially as Wall Street endures one of its worst financial crunches in decades.

The International Monetary Fund also signaled earlier this year that it was ratcheting up its scrutiny of sovereign wealth funds  due to their rapidly growing financial clout.

IMF officials are considering voluntary best practices for the government-run investment funds which straddle international markets and control estimated assets of between two and three trillion dollars.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: October 29, 2014
UAE. Total wealth in the GCC stood at US$ 1.7 tillion in 2014, up 4.75% from 2013; Total wealth in Saudi Arabia and UAE grew by 5%; Global household wealth up 8.3% to US$263 trillion, driven by the US and Europe, according to Credit Suisse Research Institute.
date:Posted: October 29, 2014
UAE. Significant increase in inflows of private capital into UAE in 2014; UAE seen as hub between Africa and Asia; Political stability remains a major factor driving flows; UAE clear winner in the region, as other GCC countries see net outflows of private capital.
date:Posted: October 28, 2014
INTERNATIONAL. Foreign policy is what a president wishes would happen; foreign affairs are what actually happen; the problem that Obama has, which has crippled his foreign policy, is that his principles have not been defined with enough rigor to provide definitive guidance in a crisis.
UAE. Total wealth in the GCC stood at US$ 1.7 tillion in 2014, up 4.75% from 2013; Total wealth in Saudi Arabia and UAE grew by 5%; Global household wealth up 8.3% to US$263 trillion, driven by the US and Europe, according to Credit Suisse Research Institute.
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