As the oil-rich Arab Gulf seeks to recover from the global economic crisis, some sovereign wealth funds are concerned they could be required to do more “national service” to support local ailing institutions and companies.
Even before the news that Dubai World intends to suspend debt payments dented confidence in the Gulf, executives at these large pools of capital from Beijing to the Middle East were being asked to do more to stabilise their own economies. That is a departure from their original mission, which was to diversify out of their own markets.
“The sovereign wealth funds are being repoliticised,” says the vice-chairman of one big international bank in Dubai.
No comments:
Post a Comment