Middle Eastern Funds Analyzed by Floyd Associates
LOS ANGELES, CA, Jul 23, 2008 (MARKET WIRE via COMTEX) — Floyd Associates, a privately held consulting firm with operations in corporate finance, business strategy, investment banking, Shariah advisory services, and mergers & acquisitions analyzes decreased capital investments in the US by Middle Eastern Funds.
According to the National Real Estate Investor magazine, “Global real estate investment by Arab investors will nearly double this year, to $22 billion, say analysts Jones Lang LaSalle. Arab investments in the US, however, may lag. Through May of this year, Middle East investment in the US totaled $1.8 billion, far less than the $4.8 billion spent in the first five months of 2007 and $8.2 billion spent for the year, according to New York-based research firm Real Capital Analytics.”
One of the major factors responsible for the dwindling investments by Middle Eastern investors, mostly sovereign wealth funds, in the US is the fear of persistent economic downturn. The depreciating US Dollar is another factor contributing to reduced interest in US assets and real estate. Arab investors are finding more compelling opportunities in the emerging markets such as India and Eastern Europe. Arcapita, an investment firm managing capital of wealthy families in Bahrain, is an example of institutions active is such regions.
As for their US investments Arabs have had a policy shift, preferring to participate indirectly through private equity firms and other alternative vehicles. Despite the pessimism, however, capital has not stopped to flow into the US. GE, for example, recently announced that Mubadala Development Company is likely to become one of GE’s largest 10 institutional investors through the partnerships that the two are forming. Among other projects, the companies are working on initiatives in clean energy, finance, and aviation. The recent $800M purchase of a 75% interest in the Chrysler Building in New York by the Abu Dhabi Investment Council is another case in point.
Please go to our blog for more on flow of capital from Middle East to the US.
Floyd Associates, Emirates Capital, and Nortia Capital are proud hosts of the 2008 Global Investment Symposium in Dubai. This conference shall be an opportunity to bring together undiscovered growth companies and investors in a stimulating, intellectual, and unparalleled environment. It is a great way to help raise capital and awareness for companies by networking with investment bankers, hedge funds managers, and other financial professionals.
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About Floyd Associates
Floyd Associates is a privately held consulting firm with expertise in corporate finance, business strategy, and mergers and acquisitions. Our expert team advises companies of various sizes on capital raising instruments, optimal capital structures, and formation of strategic alliances. Capitalizing on years of experience, the Company offers complete solutions customized to meet the specific needs of each of its clients. The Company intends to form long lasting relationships with its clients and to maximize shareholder value through optimization of capital structure and business planning. Solutions include equity financing, business expansion plans, global corporate finance solutions, and international trade strategies.
Except for historical information contained herein, the statements in this news release are forward-looking statements that involve known and unknown risks and uncertainties, which may cause the Company’s actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company’s plans or expectations.
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