Business | Markets

US seeks Gulf money to get over financial crisis

A senior US official on Tuesday made a strong pitch for Gulf Arab investment and promised them better treatment than meted out to Dubai port operator DP World two years ago as the United States tries to overcome turmoil in its financial system.

  • By Shakir Husain, Staff Reporter
  • Published: 14:51 October 28, 2008
  • Gulf News

Dubai: A senior US official on Tuesday made a strong pitch for Gulf Arab investment and promised them better treatment than meted out to Dubai port operator DP World two years ago as the United States tries to overcome turmoil in its financial system.

Robert Kimmitt, deputy secretary of the Treasury, said that the crisis is not limited to the US and Europe but "has ramifications for all countries, including the Gulf."

Kimmitt called for collective efforts to rebuild confidence in the markets and stressed investment funds controlled by governments in the region had a role to play in this.

If sovereign wealth funds (SWFs) continue their "over five decades of track record of investing on sound commercial basis both in the US and elsewhere," they can contribute to spurring global economic growth, he said.

In recent months, there has been increased scrutiny of SWFs in the West, with concerns about the possibility of their investments being made on political rather than on commercial considerations.

Kimmitt said a set of principles developed recently after a meting of 26 countries that operate SWFs and with the involvement of the International Monetary Fund will promote better understanding of such funds and underscore their commitment to global financial stability and free flow of capital across borders.

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