SWF Radar DPWorld

JOC reports that, “A DP World executive said the global financial crisis could convince port authorities in the United States to re-think their current model that limits marine terminal development to shipping lines and domestically-based investor groups.”

Zawya reports that, “DP World, a subsidiary of Dubai World, has signed a pact to operate the Djendjen cargo terminal in Algeria. As per the agreement, a joint UAE-Algeria firm will be set up in the first quarter of 2009 to take over operations….The port, which opened in 1993, is the most commercially important in Algeria. DP World currently operates 45 terminals, in addition to 13 new developments in the pipeline, across 29 nations.

AME Info reports that, “At a private luncheon hosted by the National U.S.-Arab Chamber of Commerce (NUSACC), H.E. Sheikha Lubna Al Qasimi, UAE Minister of Foreign Trade, met with association leaders to discuss the importance of enhancing trade between the UAE and the United States.”

It quotes Sheikha Lubna saying that, “One of the lessons of the 2006 DP World fiasco…was that we lacked a sufficient understanding of the United States and the need to meet with various constituencies here. We learned a lesson the hard way that it’s important to reach out across the country - to member companies like yours - and not to focus only on Washington DC.”

Agence France-Presse reports that, “Dubai Port World (DP World) has agreed on a deal to run the cargo terminal in the Algerian port Djendjen, the port’s managing director said Sunday, the Algerian news agency APS reported. A joint Algerian-Emirati company will be set up in the first quarter of 2009 to run the port, Mohamed Atmane told APS.”

It adds that Djendjen is “the most commercially important in Algeria.”

The National reports that, “DP World has purchased a 60 per cent stake in the Spanish port operator, Contarsa Sociedad de Estiba, giving the Dubai firm its first foothold in Spain and its third in the growing Mediterranean market.”

Henry Paulson writes in Abu Dhabi’s The National newspaper that, “As the US urges other nations to open their economies, many in the Middle East ask if we genuinely welcome foreign investment now. Some worry about a general, growing protectionist sentiment in America. They may also worry that US sentiment toward Middle East investment was permanently affected by the Dubai Ports World case. My response is the same as that expressed by President Bush during his Middle East visit two weeks ago – as America seeks to open new markets abroad, we will keep our markets open to investment from private firms and sovereign wealth funds. We reject measures that would isolate us from the world economy.”

Emirates Business 24/7 reports that, “Dubai Ports World shareholders have approved a series of resolutions at the company’s first annual meeting that could see it buy back up to 581 million shares. They also gave permission for DP World to issue securities up to an aggregate nominal amount of $553 million (Dh4.01 billion) – one third of the existing share capital. However, DP World Chief Executive Mohammed Sharaf stressed the company had no intention of exercising these options and said the resolutions were merely in line with international best practice.”

The Independent reports that, “The [UK] Prime Minister [Gordon Brown, speaking at Google’s Zeitgeist conference,] has lambasted the growing climate of protectionism in the US, turning up the pressure on the presidential candidates not to bow to a public sentiment increasingly fearful of globalisation.”

The article adds that, “Not only is US macroeconomic policy tilting towards greater restriction, but mergers and acquisitions are also increasingly viewed through the lens of national security. Earlier this year, senior politicians lashed out when a $35bn (£18bn) contract for refuelling tankers went to EADS, which is European, rather than Boeing, which is American. And in 2006 the takeover of P&O by DP World, a group owned by the ruler of Dubai, was nearly scuppered because of P&O’s contracts to run six major US ports. Amid a huge furore, legislators threatened to block the deal, and it only went ahead when DP World agreed to the sale of P&O’s US operations.”

The Economic Times reports that, “Several Dubai-based companies, who have invested billions of dollars in many real estate and infrastructure projects in India, are keen to boost it further in one of the fastest growing economies in the world. The Dubai companies - Emaaar, Limitless and DP World have large operations and projects in India, but are keen to enter the infrastructure projects like the airports sector.”

The Media Line writes that, “United Arab Emirates (UAE) investors are focusing on investing in China since the aborted Dubai Ports World deal, whereby Dubai Ports World, a company owned by the government of Dubai, would have obtained control over loading and unloading ships at a half-dozen major U.S. ports. The DP World controversy has reinforced some fears in the Middle East that investments in the United States have become politically risky for Gulf investors.”