Middle East Sovereign Wealth Funds Investing in Alternatives

In an effort to generate better returns for their shareholders, Middle Eastern Sovereign Wealth Funds (SWFs) are looking to actively invest in alternative investments.

Looking forward, 2015 is set to be an active year for SWFs in the region. -  Ashish Dave, KPMG Partner and Head of Private Equity and Sovereign Wealth Funds

According to officials, the areas of direct investments for SWFs are generally chosen with a focus on investing in infrastructure, private equity, and real estate investments.

While the majority of SWFs continue to deploy their funds in bonds and global equities, a relatively low interest rate environment, continually evolving investment strategies and a growing appetite for alternative asset classes are resulting in a shift away from what has typically been a passive investment philosophy. - Vikas Papriwal, KPMG Partner and Head of Markets

Middle Eastern investors look for alternative investments.

According to the KPMG report, the region’s SWFs are taking advantage of their scale and long-term investment strategies to allocate more of their assets to sectors such as hospitality, industry, logistics and retail. The SWFs also continued to pour in capital to fund infrastructure investment, where yields are higher for investors. In addition, the Middle East SWFs are increasingly shifting away from European markets due to the economic conditions there and have redirected a portion of funds to the Middle East market.

In November 2014, QIA’s chief executive Ahmed Al Sayed said that the fund is looking to invest between $15 billion and $20 billion over the next five years into Asian market investments. He specifically noted that China’s property, infrastructure and healthcare sectors are of interest to the QIA for future investment holdings.

According to the KPMG, Global SWFs currently have approximately $5 trillion in assets under management (AUM). Of this amount, the SWFs in the GCC (most notably ADIA, currently the world’s third largest SWF as per KPMG’s estimations) account for approximately 40 percent of global SWFs by AUM.

Are UAE Investors Willing to Take on More Risk?

Investors in the UAE (United Arab Emirates), are now starting to realize that they may have to take on additional risks in their portfolios on order to obtain positive returns during unstable market conditions. A recent study by Durable Portfolio Construction Research Centre of Natixis Global Asset Management (NGAM) shows that 57 per cent are willing to increase the level of investment risk in comparison to the global average of just 44 percent. While UAE investors understand the need to be careful with the unstable nature of the global economy, particularly in the West, they still realize that this is no time to be complacent and sit around and wait for things to vastly improve; before making investments.

"These findings demonstrate a clear change of direction for regional investors, who are now willing to be more adventurous than ever in their investment decisions ... This is an opportunity for the region’s financial advisers to help nurture the investment potential investors can achieve, while at the same time educate to have a clear strategy in place."- Head of Distribution, NGAM Dubai

The study also revealed some other interesting statistics. For example, only 35 per cent of UAE investors say they actually have a plan in place, to help them reach their financial goals. Couple that statistic with the fact that 80 per cent of UAE investors say they do not have a strong investment knowledge, and what is shown is that there is an urgent need for UAE investors to work more closely with financial advisers. This is a huge opportunity for financial firms to capitalize on the inherent need for their services in the region and they must do a better job to encourage investors to seek their advice and strategies.

It would seem that now, more than ever, it is critical that investors seek financial advice in order to give themselves the best chance of achieving long term investment success. UAE investors, like so many others around the world, are concerned with generating the biggest returns on their investments and many are now realizing that they may have to seek professional help in order to increase their odds. More and more UAE investors are discovering that when it comes to investing, it is always recommended to learn about investments before making a commitment, of any kind or size. It is paramount that inexperienced investors seek out the advice of experienced investors and financial advisers, to avoid unnecessary risk and reach their goals.

Tasneef, Dubai Drydocks Partner For Classification Services

It was recently announced that Tasneef Emirates Classification, the first classification society in GCC as well as Arab World, and Dubai Drydocks World have entered into a partnership to begin regulating merchant vessels; which will be the first service of its kind in the Middle Eastern region. The partnership will consist of providing classification services to merchant vessels using the country's ports. In addition, this agreement could also encourage more ship owners to register their vessels to sail under the UAE flag, which can help boost the shipping and container sector significantly in the Middle Eastern region.

Under the new agreement between Tasneef and Dubai Drydocks, there will be mass construction of ships, and ships will be able to obtain shipping surveys and certificates, something they need to do to get insurance. More importantly, the agreement would significantly boost national shipping services and also provide support to firms in the UAE's rapidly expanding and lucrative shipbuilding and repair sector. Lloyd's Register, a maritime classification society, had an operating income of £893 million last year, up 3.4 per cent from 2011. Although there are more than 60 established classification societies around the world, only 13 operate under the banner of the global International Association of Classification Societies (IACS). Currently, UAE-based vessels can follow regulations provided by any IACS-accredited society. Additionally, the work of authorizing ships is mostly shared between five long-established societies; Lloyd's, Bureau Veritas, the American Bureau of Shipping, the Norway-based Det Norske Veritas and the Japanese body Nippon Kaiji Kyokai.

With Tasneef already recognized by the International Maritime Organisation through the UAE's National Transport Authority, the company has now set its sights on becoming a member of the IACS, before the end of 2013. Moreover, in January (2013), Tasneef announced that it would be forming a three-year partnership with the Italian-based classification society Rina Group and would be adopting its classification system in the hopes of setting up its own society.

You Can Expect UAE Will Continue To Dominate Shipping Sector

Analysts from across the globe agree that the United Arab Emirates (UAE) can be expected to continue to dominate the Arab Gulf region's shipping sector, as it keeps investing heavily in its facilities. The reason that it currently dominates the sector and is forecast to in the future, is mainly because of the massive investments the nation has made in it’s port systems in the first place. The new huge Khalifa Port, opened last year, has been nothing short of a big success in it’s first year and is expected to exceed all expectations in the foreseeable future. The award-winning Jebel Ali port has already announced plans to add another terminal in order to stay ahead of it’s competition in the region.

Even the smaller ports are reporting record growth numbers in container volume and are forecast to grow to unprecedented levels well into the future. The UAE is perfectly situated geographically to take advantage of the incredible amount of maritime traffic that passes by each day. As the global economy ramps up in the next couple of years, it is expected that the Arab Gulf region will be a major hub and the UAE will be the main beneficiary of it. They already are capitalizing on it, as their giant investments have been paying off on a consistent basis in the last ten years, with the exception of a slowdown after the Financial Crisis began.

The UAE will be granted official emerging market status in early 2014 and some analysts believe it’s about time. Over the last 40 years, it has gone from an oil-based economy (70% of GDP in 1971) to a more diverse economic base (29% of GDP in 2010). The reason it has grown it’s non-oil sectors so remarkably is because the country had a plan and the money to invest and made the right decisions for the future at the right times. Another staggering statistic is that the UAE’s GDP has increased over 192 times in value over the last four decades and with all their continued investments into maintaining the trend, they are expected to be one of the most stable and influential countries in the new world economy of the future.

Ports are the lifeline of any country’s economy. They have to be functional and effective or else the regions economy could suffer, as a result. The leaders in the UAE, both business and government, have certainly recognized their importance of making shipping port and infrastructure investments and spared no expense to build the best state-of-the-art facilities that would give them the best chance to compete and succeed in the future. This is why they are dominating the shipping sector in the region today and will for a long time to come [my opinion].

Dubai Strengthens Economic And Investment Ties With China

China, which currently serves as the locomotive of world trade and the world's second largest economy, is continuing to strengthen economic and investment ties with the United Arab Emirates (UAE), specifically in Dubai. The Dubai Economic Council (DEC) is seeking to heavily deepen the partnership between Dubai and China by proposing mechanisms and policies and communicating with the various economic departments in China. China, being a world-leading economy and the UAE, an emerging market within the global economy are both looking to continue boosting their respective economies by creating stronger investment partnerships.

Over the years, Dubai has managed to prove itself as a regional, global trade hub providing state of the art logistics, in addition to its modern infrastructure and extensive network. This extensive network includes shipping lines and transport with the highest international standards, making it an appealing market for investors from all over the world. In addition, Dubai also has strong bilateral business relationships with a number of different countries, from the east and the west, but the relationship with China is of special strategic significance beyond the tradition to affect vital areas such as energy, industry and infrastructure, including a number of strategic projects in the pipeline by major Chinese companies. The Government of China is supporting the creation and development of several projects in the Emirates. These include: tourism, industry and retail in addition to recycling.

With these two major Asian economies on the rise and building meaningful investment ties, it will be interesting to see how private investors react to the major business and investment opportunities that will emerge in both the Chinese and UAE markets. The UAE will continue to welcome Chinese investment in all areas, focusing on tourism, especially in light of Dubai vision 2020 to develop the tourism sector. The goal is 20 million tourists & AED 300 billion in tourism revenues annually, by 2020.

UAE Continues To Offer Impressive Options to Foreign Investors

United Arab Emirates (UAE) continues to make financial news almost on weekly basis and for all impressive reasons. Just recently, the nation was elevated to emerging market status that will begin in May of 2014 and it is a testament to all they have continuously done to grow their domestic economy for the future. Although it may be nice to have all that oil money in the bank to fall back on in times of trouble, the UAE had been spending and investing it wisely in foreign markets and what they are accomplishing is nothing short of extremely impressive.

The nation is becoming a hotspot for foreign investment as their FDI (foreign direct investment) indicate double-digit increases since 2010 and investors seem to be flocking to take advantage of the excellent investing opportunities and conditions. The UAE is now seen as a relatively safe haven for investor’s capital and as a result, it helps fuel the local economy even more, sort of like a snowball effect. The country is seen around the world now as being more “investor-friendly,” due to their restructuring of their foreign investment laws. In fact, it has been said that other nations should take more notice of what is contained in them and apply some of their principles to their own investing regulations, in a manner that encourages investing opportunities that earn steady investment returns for investors and attracts more investments into the country.

In the UAE, the leaders had a vision for their nation and have gone about building it for all the world to see and benefit from. Their tourism numbers are consistently growing beyond expectation and their manufacturing base has increased substantially in recent years as non-oil exports continue to grow annually. The UAE economy did take a bit of a hit when the European financial crisis began in 2008 but a determined effort in the mean-time has paid off with the positive results that are witnessed today in the country.

The capital city, Abu Dhabi, has been a big beneficiary of tens of billions of dollars of investment and it is easy to see where it has been spent. The city and surrounding area is beginning to look like something out of an artist’s imaginative mind that has come to life on a huge scale. Some may even go as far as to say it is one of the most beautiful and modern cities in the world and there is still much more to be done before it is complete. It’s no wonder people from all over the world are flocking to experience it first-hand and review investment opportunities in the region. While it may be good to have a lot of money in the bank, much more good can be done with it if it is spent and invested in a manner that is beneficial to the greater good, in this case, the future economic foundation of the UAE. From all viewpoints, it would seem they will be a force to be reckoning with in the future.

IMF Tells Investors UAE Will Continue Strong Economic Growth

According to the International Monetary Fund (IMF), the United Arab Emirates (UAE) economy will experience a growth of 3.6 per cent in the current year on the back of higher oil prices and further supported by investment, trade and rising tourist arrivals. The IMF fully assessed the financial and economic performance of the second biggest Arab economy, and has highlighted the positive indicators of the UAE’s overall economy. The fund projected a gross domestic product growth of 3.6 per cent in 2013, which is a result of economic activities supported by investments, trade, tourism and logistics support. This growth is predicted to increase to 3.7 per cent the following year in 2014 and 3.8 per cent in 2015.

The report, conducted by the IMF, additionally indicated the decrease of inflation in the UAE to 0.7 per cent compared to the country's 0.9 per cent of the gross domestic product (GDP) in 2011. Nevertheless, the IMF is estimating a rise in inflation to 2 per cent in 2013, followed by an increase of 2.4 per cent in 2014 and 2.5 per cent in 2015. With regards to the country's exports, the UAE are expected to see an increase to approximately $367 billion in 2013 and experience continued growth to $393 billion by 2014, followed by $420 billion in 2015. Keeping in line with the expected medium-term recovery in the non-oil industry, it is predicted that the sector will grow by 4.2 per cent in 2015, where the IMF projects a rise in exports to $109 billion in 2013, $120 billion in 2014 and $134 billion in 2015; compared to $96 billion in 2012 and nearly $71 billion in 2011. Moreover, the IMF expects domestic investing, including both business and investment opportunities, to rise to 15.6 per cent (of GDP) in 2013.

The UAE has been continuing to showcase strong economic patterns through its macroeconomic policy and consistently attract interest from investors that are eager to pour capital into the Arab country. In addition, the continuous positive steps taken by the country's federal government to further strengthen the UAE’s economy through with the policies which support the financial sector’s stability, led to the economy’s recovery and strengthened the state’s ability to overcome the barriers of the global financial crisis. Furthermore, as UAE's biggest and most contributing economy to the nation's growth, the country is anxiously awaiting the World Expo 2020 announcement in November 2013, and hoping Dubai will be chosen to host the international event. As the UAE economy continues to rise, Dubai seems as if it would be the perfect location to host this global event.

Arab Investors Seeking More Profitable Investments in the UK

It would be interesting to see what the United Kingdom and London would look like these days if they did not have massive investments from big foreign investors like the UAE and Qatar. The UAE is certainly in the forefront when it comes to foreign investing in the UK’s infrastructure as the new huge London Gateway continues to make news as to it’s progress towards it’s intended completion date by the end of this calendar year.  It has spawned thousands of local jobs and will sustain many more thousands after it is finally open to the world to showcase it’s effective and efficient technological advances that DP World has built into it.

Qatar’s sovereign wealth fund has been busy spreading it’s money around and has been investing in London’s finest buildings and institutions over the last five years. Just recently, Lambeth Borough Council reached an agreement with Qatari Diar Real Estate Investment, the property unit of Qatar’s wealth fund, to build close to 900 homes as well as eight more office blocks alongside the city’s Canary Wharf Group. A council document that recommended the planning permission for the mega-project read, "The development would give rise to not only additional jobs in the borough but would also contribute towards strategic objectives for London in its promotion as a world city."

Qatar has been quite busy the last few years, buying up some investment bargains the city has been offering, including a string of property assets in London, such as an 80 percent stake in Western Europe’s tallest building, The Shard. As well, the wealth fund is heavily involved in funding luxury properties at the city’s Chelsea Barracks. It seems that some rich Arab Gulf nations have a lot of money to invest and they like to spend it on prestigious and long-standing institutions. It should be mentioned that they would not be investing in these landmarks and big projects if the price was not right and the investment opportunity was not a good one.

That’s what investing is all about anyway. Choosing the right investment that fits both a lifestyle and budget and provides an enjoyable investing experience. It certainly helps to have deep pockets as these Arab nations have and it gives them the advantage going into negotiations because they have plenty of money and even more where their investment money came from. Needless to say, these oil-rich nations have been making major investments all around the world as they have been capitalizing on the opportunities that have arisen since the financial meltdown began in 2008. Buy low and sell high is the stock market motto. The Arab Nations have been getting some real good bargains of late and are always looking for more that come up. The way the European economy is slow to rebound, there are certain to be many more opportunities in the future, for foreign investors to invest their money.

UAE And Qatar Will be Elevated to Emerging Market Status

Announced in a statement from global index developer MSC, The United Arab Emirates (UAE) and Qatar are both getting an upgrade to Emerging Markets status from Frontier Markets in May of next year. This is significant news for both Arab Gulf nations. They have both been very busy driving their economies forward in the last decade and this announcement gives justification to all their initiatives and investments made to build, diversify and grow their countries economic foundations. Some  analysts believe that in particular, the UAE’s status of Emerging Market may not last long, if they continue to generate prosperity at the rate they have in the last few years. They will sooner than later reach full-fledged Developed status as their investments begin to pay off in a big way in the very near future.

The UAE’s investments into their port and transport infrastructures has already earned them international recognition and their tourist attractions have received rave reviews from all around the world. With the other emerging markets in the East creating more economic opportunities for the region as a whole, the UAE is in a perfect position to fully capitalize on it. Much credit has to be given to their forward-thinking leadership that had the foresight to put their economic vision to the people with the nation’s population embracing it and everyone is better off as a result. This status upgrade should be very encouraging to the nation as a whole as it has been a totally dedicated and coordinated effort on the part of business, government and the work-force to grow their economy for the future and the results are already showing; in a very big way.

The upgrade to emerging market status will pay huge dividends for these two prospering countries. It is expected that with this distinction they could generate as much as $400 million in new investments from the international investment community, which will help them continue to grow their economies with money from foreign investors.

"We are delighted to see the UAE market upgraded to Emerging Markets status, which reflects international investors’ confidence in our markets and their satisfaction with what we have accomplished. The reignited interest of local and foreign investors towards DFM since the beginning of the year underlines that what we have implemented caters to investors’ expectations and the attractiveness of UAE market to foreign investments."- Dubai Financial Market (DFM) Managing Director and CEO

It looks as if everything is going according to the UAE plans to emerge as a viable contributor to the world’s economy. Officials have worked hard to restructure the country's economic foundation and invested in the necessary upgrades and improvements to infrastructure and ports, to facilitate, accommodate and sustain economic growth. Looking toward the future, I believe the investment climate in Qatar and the UAE will continue to improve, especially as officials focus their efforts on attaining Developed status.

UAE Creates Appealing Opportunites For Itself and Investors

The United Arab Emirates (UAE) has been quite busy the last number of years growing their economy literally from the ground up. For example to attract tourists, they have built the magnificent Burj Al Arab, a luxury hotel located in Dubai, United Arab Emirates. It is the fourth tallest hotel in the world stands at 321 m (1,053 ft) and sits on an artificial island. Their man-made Palm Islands are a sight to behold for the many visitors that come to the region.

The UAE’s Burj Khalifa is the tallest skyscraper in the world registering a height of 2717 feet and recognized as one the world’s most elite structures. They already have plans to build the a whole new city that will house the largest shipping center in the world. It seems that everything the UAE is building these days is the world’s biggest and best or close to it. Why not, if you have the money to do it? Although the UAE may have a lot of money, their choice to invest it in this manner is very smart indeed, especially from an economic standpoint. Their approach has not only created opportunities for the UAE, but also resulted in appealing investment opportunities for the international investment community, as well.

For the longest time, the UAE’s economy depended heavily on oil, and it still does to a great extent. Their leaders’ vision to build a strong more diverse domestic economy featuring some of the world’s latest and greatest engineering technologies, is what sets the nation apart from other countries that are building their own economies with very different visions and certainly less appealing results. These mega-projects also have created many thousands of local jobs that have in turn helped fuel their economy while generating prosperity for it’s people.

As a result of their manufacturing base being increased leading to more non-oil exports and a rise in imports to feed their growing consumer base, the UAE also had to look at doing something to upgrade their ports as well. Abu Dhabi's Khalifa Port Container Terminal, was just opened late last year and is already expected to surpass their first-year projections by far. The state-of-the-art facility continues to get very positive reviews and is functioning almost flawlessly so far. It should also be mentioned that the Jebel Ali Port located near Dubai, is the world's largest man-made harbor and the largest container port between Rotterdam and Singapore. There is an old expression used often in the West, "go big or go home.” When applying it the UAE, their home is already filled with big things with the promise of more big things to come in the future.

Investing Helps UAE Experience Strong Steady Economic Growth

When looking at different regions of the world and comparing their GDP rates of the past five years and examining the current rates, it is easy to get a good picture of the direction of future global economy. China, is at the top of the list, experiencing GDP growth at a rate averaging between 5 to 10 percent with forecasts expecting the trend to continue for the next decade. On the other end of the scale sits the United States and most parts of western Europe, who have had little GDP growth overall since 2008 and is just now hovering around the 1 to 2 percent range. Analysts expect the western nation’s GDP growth rate to come nowhere near 3 to 5 percent before the year 2020.

Over the course of these past years, a large number of countries and regions around the world have been experiencing excellent growth in their GDP numbers. Many are now emerging to become major contributors to the global economy of the future as their nations continue to prosper in the coming years, expecting to achieve an average of 5 percent growth collectively. In other words, there is a new order starting to shape the global economy and it’s mainly driven by the new emerging consumer markets, such as China, India, Russia, Brazil and Africa. The western nations will have a difficult time competing in the future if they don’t hurry up and restructure and rebuild their broken economies.

One nation of the world that has been quite busy building their economy has been the UAE. A number of years ago their leaders put in place a vision to build a new diverse economy by increasing their domestic manufacturing levels and making huge investments into ports and infrastructure, to build a solid foundation for their economic future. So far it seems to be working very well, as their recent GDP numbers show. The UAE’s GDP grew 4.4 percent in 2012, the highest rate since 2006. The country did indeed suffer as a result of the western financial crisis but they are now back on track with their massive building plans for their future, looking to invest $90 billion on more development projects in the next few years. There are even plans for Dubai to build  an entire new city that would feature 100 hotels and the world’s largest shopping mall.

The UAE expects their GDP growth to remain steady around 4 to 5 percent for the foreseeable future as they continue to put their economic plans into action. Sometimes it’s nice to have all the money that the UAE has at it’s disposal, particularly if you are a country looking to grow and maintain economic growth. What the UAE is proving to the rest of the world is that it is not a carefully guarded investment secret or how much money you have, but rather how you invest it. They have spent their money wisely by investing in building a strong foundation for their domestic economic growth. It has paid off in the short term for them and will no doubt pay giant dividends for the country in the future.

India and UAE Could Establish Bilateral Trade Agreement

India, one of the world’s "most promising" countries, is looking to sign a Bilateral Investment Protection Agreement with the UAE in the near future, hoping it will help the growing nation in its quest to become a major force in the global economy. M.K. Lokesh, Indian Ambassador to the UAE, stated, "Both sides have agreed to start the negotiations next month," adding the Indian government is committed to addressing the concerns about UAE investments in India.

There has indeed been a lot of economic progress in India in the last 20 years. Long-regarded as one of the world’s most poorest nations in the last century, it looks as though those days are behind them as India continues to increase it’s prosperity levels among it’s more than one billion people. Although the country’s rise up the ranks as a viable contributor to the global economy has been somewhat slow with some peaks and valleys, it has been overall a relatively steady uphill climb although they have suffered somewhat of a setback as a result of the U.S.-European Banking crisis. They were not alone. Most other countries did as well.

In 1990, India’s GDP worth was a little over US$300 billion and has grown to more than six times since then, with periods of ups and downs due to a number of influential factors. A lot of which has to do with the economic ties that the country has with other major players on the global economic stage. What happens in the West has a big impact on India’s economy and at the same time, the growing markets of the east are putting pressure on India as they are emerging as strong competition. As well, India has had to rely on foreign investments to help power their growth and the government has been fairly slow in its restructuring of foreign investment laws, leading to a lack of confidence from businesses and investors looking to capitalize on its huge potential.

India’s push to grow their economy and increase their prosperity among their people was never going to be an easy task and they have had their struggles and continue to. This pending agreement with the UAE will go a long way in forging a good relationship with one of the world’s most stable and richest nations. The UAE is a great example of how to make the right investments that will generate the best returns in both the short and long term of a country’s economy. Above all, India could certainly benefit from more similar trade agreements with other more stable countries around the world, instead of having to depend too much on the United States or the European nations. Either way, the country has a bright future to look forward to in the 21st century. It just may take a little longer than expected and hoped for.

China And UAE Capitalizing On Global Economic Opportunities

The global economy has doubled in size since the turn of the century. Thanks in large part to the rise of the world’s emerging markets. It is not surprising that many of these emerging markets have had help from foreign investments mainly from the UAE and other Arab Gulf nations and China as well. The two common denominators between the two regions is cash money. Both China and the oil-rich Gulf States have plenty of money reserves to invest and they have not been shy in doling it out.

There’s an old saying that “money talks.” When it comes to the growth of the global economy in the last decade, China and the UAE in particular, have been taking advantage of the growth opportunities and have invested trillions of dollars around the world and have put themselves in a strong position to dictate the direction of world trade in the future. There is no doubt all participants stand to benefit greatly from these massive investments and unfortunately it all comes at the expense of the former global economic leaders, the United States and Western Europe. They are inevitably losing their status as leading global economic superpowers and by the time they right their fiscal financial ships, China and the UAE will have sailed on by on the strength of theirs. A new world economic order is no doubt beginning to take shape and as a result, creating appealing investment opportunities.

As it stands today, China, the UAE and all the other emerging markets are expected to have annual GDP growth rates of between 7-10% in the next five years, whereas the U.S. and the European Union are looking at between 1-2%.  Both western Europe and the U.S. are still struggling to revive their economies ever since their past investment mistakes came back to haunt them starting in 2008. As a result, they only have limited resources on which to build the proper infrastructures in order to be more competitive as the global economy head towards an economic boom by 2020.

Both China and the UAE have invested heavily into the former economic giants but the western economies must grow naturally as a result of their government policies to create a strong foundation once again on which to re-build. It makes no sense to invest in declining markets and it makes no money either. Investing in growth markets has been the particular theme that China and the UAE have followed in recent years and it is already paying off in the short term and is expected to for many years into the future. Money makes the economic world go around. These days and for the foreseeable future, it looks like investments from China and the UAE will inevitably buy the gas that’s needed to power the world’s economy. It’s a good thing they have the money to invest and have done so or the global economy and all these emerging markets would be in rough shape today and similar to the current state of the western economies.  I cannot see how that would not be good for anyone anywhere in the world.

Khalifa Port Continues To Meet Shipping Industry Expectations

Abu Dhabi’s new state-of-the-art, Khalifa Port, continues to meet and even beat expectations. The deep-water port, looks like it’s on track to surpass their initial forecast of 1 million containers TEUs handled in it’s first full calendar year of operation. It opened in September of 2012 and so far all the new technological advancements incorporated into the modern structure has performed really well and for the most part, all operations have been running smoothly.

It is essentially a man-made island port, built in part to ensure the capability to accommodate the world’s largest container vessels. Another reason it was designed and constructed in such a manner is to allow the port plenty of room for expansion into the future. At this point, the port has a capacity to handle 2.5 million containers with the ultimate goal to expand the port to be able to accommodate 15 million containers by the year 2030. That represents an increase of 600% and the officials at the Abu Dhabi Ports Company (ADPC) believe it’s entirely possible that with the right investments in place, there will be that much traffic moving through it’s operation.

ADPC acting CEO, Captain Mohammad Al Shamisi, stated recently "We are a focal point for regional trade. We have invested heavily in new infrastructure and the latest technologies. As a result we have been able to develop our position as a logistics platform for a much wider region." The port operator is trying to establish more direct routes for it’s merchants to make it more enticing and beneficial as well as cost-effective. Currently ADPC has 64 direct destinations and is looking to add the Americas to their growing list, that already includes most parts of Asia, Europe, GCC (Gulf Cooperation Council), Africa and the Middle East.

Khalifa Port is quickly starting to shape up as a hub port for the gulf region and with the emerging markets continuing to grow and expand their consumer markets, the port will indeed be in a strong position to capitalise on the future growth prospects as demand increases. The UAE is no doubt going to be a leading port destination in the new future global economy. ADPC’s massive investments into the building of the 21st Century port have already begun to show great return on the investment. As the global economy continues to grow, Khalifa Port will also keep growing to meet whatever the global demand may be.

Oman Makes Investments in Preparation For a Busy Future

In the Middle East region of the world, the United Arab Emirates (UAE) seems to be getting most of the world’s attention these days, with all their major construction projects on the go; particularly when it comes to their new state-of-the-art port systems being built. Not to be outdone, neighboring Oman is looking to be a main player in the global maritime trade, by investing into it’s own port system in Sohar. Plans would see the existing terminal almost double it’s handling capacity to 1,500,000 TEU, from the existing 800,000 TEU, by year end if all goes as planned. It also has visions of expanding further by 2018, giving the port a capacity of an additional 2.5 million TEU in anticipation of substantial growth prospects.

Just working through the numbers indicates that the port in Sohar is expecting volume to increase 500 per cent before the year 2020. They must surely be expecting incredible economic growth over the next 5 years or they would not be making the huge investments in the first place. The investments in this first expansion phase are estimated to be in the range of RO 50 million (around US$100 million.) Just like the other nations in the Arab Gulf region, Oman does not want to get left behind when the new order of the future global economy unfolds. As such, officials and investors are positioning themselves to be ready to capitalize on the investment opportunities, when it happens.

Although oil has been the main driving force behind Oman’s economy, they produce much less than the UAE or Saudi Arabia, in comparison. The country also relies upon fishing and agriculture, as well as tourism to help generate GDP. Back in November of 2010, the United Nations Development Programme (UNDP) studied 135 countries around the world and determined Oman as the nation most-improved during the last forty years. Oman is widely considered to be one of the most developed and stable countries in the Arab world, giving investors good reasons to invest in the opportunities that become available in the region.

Located at the mouth of the Persian Gulf, Oman has a natural strategic position to take advantage of the expected increase in marine traffic as the global economy shifts to reflect the demands from the growing emerging markets in the east. The world’s trade routes are rapidly changing and countries that do not anticipate the opportunities that are coming along with it, will simply lose out when it comes time to competing in the future. Oman already has some incredible competition with the other Arab Gulf states but they are betting that there will be more than enough business opportunities, to be shared by all in the region. In fact, they are looking forward to it.

UAE Investors Look Forward To Building a Profitable Future

The UAE (United Arab Emirates) continues to grow their economy with great hopes for their future prospects. The country has invested tens of billion of dollars into their port and transport infrastructures in recent years along with a vision to grow their manufacturing base to diversify their economy and it has paid off in the short term with more jobs leading to increased prosperity, broadening their consumer domestic demand. This had led to a rise in non-oil exports and imports as well. All these measures have helped to grow the UAE’s economy during the European Crisis that began back in 2008.

The UAE did have a slowdown in construction during the last few years but now has revised their ambitious plans to build their economy and have revamped their efforts to get back on track to growing their economy for the future. Abu Dhabi is planning to invest $ 89.8 billion over the course of the next five years to construct more homes, schools and roads as well as investments into infrastructure projects. In the mean-time, Dubai is looking at resuming $ 1.1 billion worth of infrastructure projects that have always been in the works but have slowed down their pace the last couple of years.

Although the UAE has plenty of spending capital available, it has still managed to attract a substantial amount of foreign investment in recent years, mostly because their strong status as a safe destination for investments, has renewed investor confidence in investing opportunities in the region. This has helped to attract huge FDI (foreign direct investments) into the country, with large amounts of capital flooding in from countries in the Middle East region that were affected greatly during the European Financial Crisis. These factors have contributed to the strengthening of the UAE’s continuing economic growth and to the building of a strong economic foundation for the nation’s future.

In the UAE, it seems that everything in growing. The amount of FDI, the country's export and import levels, and a trade surplus of tens of billions of dollars, to name a few. This all leads to increased prosperity throughout the country and builds a very strong foundation for the future, putting the country in an enviable position of strength to compete in the future global economy. This is what happens when a nation has excellent leadership with a determined vision to build their nation, utilizing solid economic principles that have worked in the past.

UAE Building GDP By Investing Wisely in Ports/Infrastructure

In the business world there is an old adage that states "You have to spend money to make money." When you are a nation that wants to grow their economy, the UAE’s Minister of Economy, Sultan bin Saeed Al Mansouri, believes "If a country is not building, it’s economy is stagnant." He continued by saying, "A robust construction sector signals economic vibrancy and infuses energy into a number of other sectors as well, generating demand for building materials and technological innovations, and thereby boosting the economy further." Just taking a look at what is happening in the UAE now and in the past decade, proves that his theory is 100 per cent correct.

The UAE’s massive infrastructure projects have not only created economic stimulus leading to increased prosperity but they are also laying a solid foundation for future growth in the region. Their vision for their major ports are a testament to what can be realized, when you have a philosophy you strongly believe in and go about implementing it. In December 2012, the UAE opened its multi-billion dollar Khalifa Port and Jebel Ali Port is currently undergoing an expansion that will raise it’s annual capacity to handle 19 million TEU by 2014. The two ports are expecting to be complimentary to each other and will not be in competition together.

The UAE has also been working on diversifying their economy and have poured substantial amounts on investments into building new manufacturing centers creating even more jobs and adding to their GDP. Although the nation’s GDP level has not been as strong as before the western financial crisis began in 2008, it still managed to weather the storm by and large and is now reviving it’s ambitious plans to keep building for the future and GDP is expected to grow at record rates accordingly as the west continues to climb out of their fiscal nightmare they put themselves in.

In the meantime, the UAE has been capitalizing on the growth of the east’s emerging markets and sees many great investment opportunities for the future, where there was little before. As the country grows it’s manufacturing base while diversifying it’s economy, their non-oil exports into these new growth markets will help contribute to grow their GDP. The UAE is in a perfect geographical location to take full advantage of the growth of the world’s emerging consumer markets and they are building their economy and their ports to do so. The UAE’s leadership is determined to adapt to the ever-changing growing global economic landscape and are giving investors a good reason to invest, by building their domestic infrastructure and economy, in order to do it. It seems like a simple enough strategy for other countries to emulate.

The UAE is a Long Time Investor in The United Kingdom

London Gateway UKThe United Kingdom has been a huge beneficiary of the UAE’s vast fortune, the oil-rich nation has accrued over the last 4 decades. This should not be too much of a surprise, considering the two countries have had a great business relationship ever since the United Arab Emirates was formed in 1971. At that time, many from the UK helped to establish important sectors such as medicine, banking and aviation, to name a few. As of today, there are more than 100,000 British citizens that call the UAE their home.

Let us take a quick look at some of the history of the more monumental investments:

• Dubai’s DP World, one of the largest marine terminal operators in the world and growing at a rapid rate, is currently building the new state-of-the-art London Gateway,
• The Abu Dhabi energy firm TAQA has been instrumental in the success of the oil production at the North Sea oilfields,
• Abu Dhabi is part owner of the London Array, a clean energy facility generating power for 20 per cent of London households and
• The UAE was also a major contributor to the building of the 2012 London Olympic games.

The list goes on and on. When you look back, it is hard to imagine the state of the UK economy today, if they did not have the UAE’s massive influx of billions of dollars of investment.

These huge investments create hundreds of thousands of jobs for the UK, while at the same time building a solid foundation for the country’s economic future. The new London Gateway mega-project is a great example. London Mayor, Boris Johnson was recently quoted as saying:

"This is an outstanding piece of transport infrastructure investment that will make a long-term difference to Britain's economic competitiveness - and create 36,000 jobs ... It will restore the deep-water facility that our city lost over the course of the 20th century and give back competitiveness to London in shipping and maritime transport in a way that we haven't had in many, many years."

There is no doubt that the new London Gateway will go a long way to restoring London, and the UK for that matter, as a major leading destination for global trade in the future. When the new super-port does reach it’s expected huge potential, then the citizens of the United Kingdom are going to owe the UAE a great debt of gratitude, for making it happen in the first place. The leaders of the UAE must certainly believe in the many viable prospects offered in the UK or they would not have made these investments in the first place. While it is good to have a lot of money like the UAE has, what is most important is how it is spent, if at all. The leaders in the UAE are investing some of their fortune in the UK and by all accounts it looks like they are going to get a sizable return in the future.

UAE Will Experience 9.5 Percent Growth Rate Year After Year

For the longest period of time, the world’s economy was dominated by the United States and Europe. Since the 1990’s, the emerging markets, such as India, China, Russia, Brazil and Africa, to name a few, have begun to make their presence felt on the world economic stage. While technically, the UAE, is not considered to be an emerging market, it is however, emerging as one of the leaders of the new global economy, as the Western and European nations work to rebuild their struggling economies.

The United Arab Emirates and other oil-rich countries in the middle east have been diversifying their economies in an effort to generate local prosperity and for the most part it has been working well. In the case of the UAE, the future has never looked brighter. For example, their massive multi-billion dollar investments into upgrading and modernizing their ports have paved the way for more economic benefits including higher employment rates. This has led to more disposable income being distributed, and ultimately increasing the prosperity level of the country. In fact, analysts predict the UAE will grow at a rate of 9.5 percent every year for the foreseeable future, proving that the UAE’s economic growth policies are working as they expected and giving investors good reasons to invest in profitable opportunities; that present themselves in the region.

"We have built a world-class infrastructure in ports and logistics. By increasing the capacities of our ports, the UAE is now in a position to handle the rapidly increasing trade levels from the emerging markets," said the UAE’s Minister of Economy while at the World Ports and Trade Summit in Abu Dhabi.

The UAE’s investments into upgrading their nine ports have given the region a huge competitive advantage. Not only have these investments proven to pay off in the short term, but have also positioned the UAE to become the third largest re-export market in the world and an industry and economic leader, in the future. With its strategic geographical location between East and West, the UAE is becoming a popular hub for global trade and a vital gateway to emerging markets.

Persian Gulf Region Prepares For Global Economic Growth

Recently in Abu Dhabi, UAE, the 3rd annual World Ports and Trade Summit 2013 was held with more than 700 global port operators and key industry players attending. On the opening day of the Summit, the UAE Minister of Economy said that the development of ports’ infrastructure must be reinforced with modern logistics infrastructure and new industrial zones in order to capitalize on the Gulf’s potential in global trade. The region recognizes that by having the best transport infrastructures in place, it gives them the best opportunity to compete and succeed and provides a solid foundation for growth for decades into the future.

One very important forecast that was addressed at the Summit, confirmed what many industry analysts have been saying for some time now. That the world economy, despite the financial problems in the west, is heading for an economic boom that could see it double before 2020, due mainly to the growth of the world’s emerging consumer markets.

“While the Gulf countries must continue to explore potential opportunities around the world, there is a need to foster greater trade ties with these emerging economies in particular, as they are forecast to account for almost half of global GDP by 2020... and are projected to account for around 45 per cent of the global output by 2025.”- UAE Minister of Economy

The new emerging markets around the world previously contributed little to the wealth of the overall global economy, and combined, represent half of the total global population. As the global economy grows to record levels in the next few years, any country or region looking to participate is going need to have the right infrastructure in place in order to be competitive. The investment community would be wise to take notice that the countries in the Persian Gulf are going to be major contributors and that they have created an enticing investment climate, that is attracting foreign investors to the region.