Business | Investment
Investments in Asia to dominate Dubai portfolio
Dubai International Capital LLC, the asset management firm with more than $12 billion, said any investments made in 2008 will be in Asia, where economies may expand faster than the global average this year.
- Bloomberg
- Published: 00:09 July 8, 2008
Fukuoka, Japan: Dubai International Capital LLC, the asset management firm with more than $12 billion, said any investments made in 2008 will be in Asia, where economies may expand faster than the global average this year.
The firm has earmarked $5 billion over the next two to three years for Asia, especially China and India, Sameer Al Ansari, the company's chief executive officer, said in an interview in Japan's Fukuoka prefecture. Cash is the best option for now as private equity deals have come to a halt in Europe and in the US, he said.
Dubai International has bought stakes in ICICI Bank Ltd, HSBC Holdings Plc and Sony Corp, as the emirate seeks to diversify its sources of income away from real estate and oil.
"The focus has shifted to emerging markets and Asia where we see the better opportunities," said Al Ansari, who was attending the Asia Innovation Initiative conference in Japan's southwestern island of Kyushu. "We strongly believe that cash is king at the moment and that there will be phenomenal investment opportunities."
Infrastructure, construction and services are the industries that the fund is focused on, according to Al Ansari, as well as on companies that can benefit from growth in Dubai and neighbouring countries.
Focus
Dubai International aims to invest about $1 billion each in India and China, al-Ansari said. The fund is currently in "advanced talks" with manufacturers in the UAE and India, he said.
"Asia is very important for our investment strategy, and a year ago we started saying we want to invest more in Asia," Al Ansari said. "We're looking to build long-term relationships that help us for diversification and will benefit Dubai and the region."
Economies in Asia will expand 6.2 per cent this year, according to the International Monetary Fund (IMF).
That's more than the 4.1 per cent global average the IMF projects.
In April, Dubai International said it plans to set up a $1 billion fund with Hong Kong-based First Eastern Investment Group to focus on China.
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