Where Petrodollars are Flowing
If there were any doubts about where the real financial action can be found these days, Abu Dhabi Investment Authority's $7.5 billion foray into Citigroup should end them.
With oil prices dancing in the $90s, the Gulf states are flush with cash. And beaten-up Western banks look cheap, which is why Abu Dhabi put aside worries about the tumbling dollar and on November 26 came up with what will eventually convert into a 4.9% stake in Citigroup.
Gulf bargain hunters aren't confining themselves to banks. Dubai International Capital, a government vehicle, announced on November 26 that it had acquired a stake in Sony, believed to be less than 5%. And to give Gulf investors something to buy, Dubai listed 23% of DP World, the big port operator, on its own bourse for a staggering $5 billion.
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With oil prices dancing in the $90s, the Gulf states are flush with cash. And beaten-up Western banks look cheap, which is why Abu Dhabi put aside worries about the tumbling dollar and on November 26 came up with what will eventually convert into a 4.9% stake in Citigroup.
Gulf bargain hunters aren't confining themselves to banks. Dubai International Capital, a government vehicle, announced on November 26 that it had acquired a stake in Sony, believed to be less than 5%. And to give Gulf investors something to buy, Dubai listed 23% of DP World, the big port operator, on its own bourse for a staggering $5 billion.
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posted by Bob Moser at
6:46 PM
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