SWF Radar IstithmarWorld

Euromoney writes (subscription required) that, “The credit crisis could leave in its wake rich pickings for Middle East sovereign wealth funds. But what about private-equity-style government groups that rely more on leverage to fund their investments? Some observers now expect substantially less noise in the international markets from such operations as Istithmar, which is part of state-owned conglomerate Dubai World; and Dubai International Capital (DIC), which is part of another conglomerate, Dubai Holding. Even Qatar Investment Authority, a more conventional sovereign wealth fund, will be slightly more subdued, according to some analysts, as its investment model includes leveraged buyouts.”

Thomson Reuters reports that, “Dubai government investment agency Istithmar World said on Tuesday it was opening an office in New York as it looks to tap investment opportunities on the American continent created by the financial crisis.”

The National reports that, “Istithmar World, the investment company owned by the Dubai Government through Dubai World, has suspended two of its most senior executives who have been arrested as part of a corruption inquiry by the Dubai authorities.”

The Wall Street Journal reports that, “A police dragnet continues to widen among senior corporate executives [in Dubai], in what appears to be a concerted push by government officials to put the shine back on this Mideast boomtown’s damaged reputation.”

The article refers to probes at Nakheel, Deyaar and Dubai Islamic Bank, as well as to the investigation of two Istithmar World senior managers relating to alleged embezzlement at their previous employer, Tamweel.

Thomson Reuters reports that, “Dubai mortgage lender Tamweel’s former chief executive and head of investments are under investigation for alleged wrongdoing, their current Dubai employer said on Thursday.”

The article adds that, “[Adel al-Shirawi], who stepped down as Tamweel CEO in January, is now vice chairman of Istithmar World, a unit of state-owned Dubai World.”

AFP reports that, “Cirque du Soleil sold a 20-percent stake in its entertainment dynasty Wednesday to two Dubai firms to fuel its worldwide explosion, starting with a new permanent show in the Middle East. Istithmar World, the investment arm of Dubai World, and real estate developer Nakheel paid an undisclosed sum for a 10 percent share each in the circus company, they announced.”

Khaleej Times reports that, “Istithmar World, the investment arm of Dubai World, yesterday reiterated that it will continue its global approach to investment, seeking opportunities across a diverse range of sectors in international markets, including the United States.”

The article quotes Adel Al Shirawi, Istithmar’s vice chairman, as saying that, “Istithmar World’s primary focus is growth and asset appreciation through a diverse portfolio which spans the globe. Going forward, we will continue to seek opportunities worldwide, including in the United States, where we already have an active asset base. The US continues to offer good returns and attractive opportunities with a diversified sector base and excellent leveraging.”

This comes a few days after Istithmar’s CEO, Ahmed bin Fahad, was quoted as saying that, “I am looking at everywhere but the US.”

Emirates Business reports that, “Dubai government investment agency Istithmar World Ventures has been ‘put off’ looking for deals in the US and instead will seek new opportunities in Africa and the Far East, according to its CEO.”

The article quotes Ahmed bin Fahad as telling Arabian Business magazine on the sidelines of the World Economic Forum (WEF) meeting in Sharm el Sheikh, Egypt, that, “I am looking at everywhere but the US.”

Reuters reports that, “Dubai government investment agency Istithmar World Capital said on Monday it would buy a majority stake in a U.S. asset management firm [North Carolina-based Gulf Stream Asset Management] as it expands outside of the world’s biggest oil-exporting region.”

Emirates Business 24/7 writes that, “Istithmar is studying several investment opportunities in various parts of the world to geographically diversify investments, its vice-chairman said on Wednesday.”