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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: August 29, 2014
KUEAIT. There is plenty of potential in the Kuwaiti market, should investor interest remain and the government carries out its proposed spending plans. The government's 2014/15 budget is expansionary, with expenditure growth of 3.2% to US$77.3 billion.
date:Posted: August 28, 2014
SAUDI ARABIA. The Saudi Arabian index is the region's most diverse capital market due to its size and maturity; Jadwa Investment views the opening up of the Tadawul as an overall positive but believes a cautious and considered path to reform is the best way forward, much like the Chinese example.
date:Posted: August 28, 2014
LEBANON. The results of the Byblos Bank/AUB Consumer Confidence Index show a marginal improvement in January and February, picking up pace in March and April, and regressing in May and June 2014.
KUEAIT. There is plenty of potential in the Kuwaiti market, should investor interest remain and the government carries out its proposed spending plans. The government's 2014/15 budget is expansionary, with expenditure growth of 3.2% to US$77.3 billion.
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