'Boom time for wealth funds'
Manama, June 30, 2008
The future of sovereign wealth funds (SWFs) is bright, says a top banker at the opening of the two-day GCC Institutional Investments Summit in Dubai on Sunday.
'Asia's export engine seems set to continue, and oil market dynamics suggest an oil price well above the Middle East's budgetary balance oil price of $40-something for the long haul,' said Bank of New York Mellon managing director for Mena Hani Kablawi.
'Really, SWF came to the rescue, and if anything that has helped improve their image and reputation. We may not have seen the end of the losses in the US and European financial sector but SWFs continue to look for bargains.
'Citi and Merrill have been key beneficiaries, taking in $19.9 billion and $11 billion in the last few months alone. In that respect, the SWF have done the American and European taxpayer's a big favour and we should continue to remind them these markets are open for investment, to ensure their capital does not head elsewhere.'
Dubai International Financial centre Authority (DIFCA) chief economist Dr Nasser Al Saidi said there has never been a more interesting time to focus a spotlight on the international investment market.
'The financial crisis that has affected the developed countries worldwide has led to an unexpected rise in the prominence of the emerging economies, where resilience, based on strong economic fundamentals, liquidity and build-up of financial assets are proving a major attraction for the big institutional investors and wealth managers,' Al Saidi said.
'This summit will provide an interesting platform for thought-provoking dialogue as the power bases in the world's financial landscape continues to shift, accompanying the structural change in the world's economic geography towards the GCC countries and emerging market economies.'-TradeArabia News Service