Dubai International Capital shifts focus to emerging markets

Date :07/05/2008 09:05:39

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Global market turmoil and a western backlash over sovereign wealth funds have pushed Dubai International Capital LLC away from Europe and North America towards emerging markets.

“It is not the time to invest in the U.S.,” Sameer al-Ansari, the head of the $13 billion fund controlled by Sheikh Mohammed bin Rashid al-Maktoum, the country’s ruler, said at a conference in Dubai.

 

He said there were now more interesting opportunities in emerging markets, particularly in Asia, than in Europe or the US. But that “the time will come for us to come again in Europe and North America.”

 

Investment portfolio

Mr. Ansari said he hoped emerging markets would make up 30 percent of DIC’s investment portfolio.

 

“We believe we can invest in China and can do good deals,” he said. He added that the countries of central Asia, such as Kazakhstan, were also interesting investment areas although DIC had to study them further.

 

Buy-outs

In addition, the tight conditions in credit markets had made it difficult for DIC’s private equity arm to raise debt for company buy-outs.

 

“You can’t do leveraged buy-outs without the leverage – it’s a complete struggle for LBOs,” he told the newspaper.

 

Moreover, he said, pressure for greater transparency from sovereign wealth funds was making investors from the region more careful about deals in the US and Europe.

 

 

May 07, 2008