Gulf Seeks More Selective, Active Invests Post Crisis
Zawya Dow Jones News
Monday, Apr 26, 2010
ABU DHABI (Zawya Dow Jones)--Investment outflows from the Gulf Cooperation Council, or GCCGulf Cooperation Council, or GCCLoading..., states have become more selective as a result of the global economic and financial downturn, with some investors seeking more active roles in their investments, bankers said at a conference Monday.
"In the past, investments were made on a wholesale basis. They're now made on a selective basis," said Nicholas Gilani, co-head of investment banking at National Bank of Abu Dhabi, the Middle East region's third-largest bank by assets.
While the global financial crisis has dampened appetites for overseas investments, large hydrocarbon resources ensure GCCGCC
Cooperation Council for the Arab States of the Gulf
states have the capital for investments, Gilani said at a Latin Ammerica-Middle East investors forum in Abu Dhabi.
GCC.net foreign assets stand at $1.3 trillion in real figures, said Christopher Garnett, president of conference host LatinFinance.
Gulf countries are eyeing high-yield opportunities in emerging markets such as the Latin American markets, but "many in the
still like to invest their money into the neighborhood," Gilani said.
"I wouldn't make an equity investment in Brazil just because the yield is there. There has to be a strategic reason," he said.
In Latin America, "what we see is a little bit different intention here, they [Middle East investors] want an active role in the companies," said Gerard Mato, head of global capital financing - Americas at HSBC and CEO of global banking - Latin America.
Latin American companies focused on building materials, food, metals--and other commodities--are the most coveted investment opportunities by Middle East investors seeking to secure commodity supplies, Mato said.
"They need investment expansion to continue their growth and secure their supply, for the next 20 to 30 years, so what they want to do is understand more the dynamics of the Latin American corporates."
-By Nour Malas, Dow Jones Newswires, mg+97150 2890223; nour.malas@dowjones.com
Zawya Dow Jones News
Monday, Apr 26, 2010
ABU DHABI (Zawya Dow Jones)--Investment outflows from the Gulf Cooperation Council, or GCCGulf Cooperation Council, or GCCLoading..., states have become more selective as a result of the global economic and financial downturn, with some investors seeking more active roles in their investments, bankers said at a conference Monday.
"In the past, investments were made on a wholesale basis. They're now made on a selective basis," said Nicholas Gilani, co-head of investment banking at National Bank of Abu Dhabi, the Middle East region's third-largest bank by assets.
While the global financial crisis has dampened appetites for overseas investments, large hydrocarbon resources ensure GCCGCC
Cooperation Council for the Arab States of the Gulf
states have the capital for investments, Gilani said at a Latin Ammerica-Middle East investors forum in Abu Dhabi.
GCC.net foreign assets stand at $1.3 trillion in real figures, said Christopher Garnett, president of conference host LatinFinance.
Gulf countries are eyeing high-yield opportunities in emerging markets such as the Latin American markets, but "many in the
still like to invest their money into the neighborhood," Gilani said.
"I wouldn't make an equity investment in Brazil just because the yield is there. There has to be a strategic reason," he said.
In Latin America, "what we see is a little bit different intention here, they [Middle East investors] want an active role in the companies," said Gerard Mato, head of global capital financing - Americas at HSBC and CEO of global banking - Latin America.
Latin American companies focused on building materials, food, metals--and other commodities--are the most coveted investment opportunities by Middle East investors seeking to secure commodity supplies, Mato said.
"They need investment expansion to continue their growth and secure their supply, for the next 20 to 30 years, so what they want to do is understand more the dynamics of the Latin American corporates."
-By Nour Malas, Dow Jones Newswires, mg+97150 2890223; nour.malas@dowjones.com