In recent years, an increasing number of wealthy Gulf sovereign wealth funds and state-owned companies, have been purchasing iconic buildings across London and investing millions of dollars in key infrastructure projects, such as DP World’s port project that will revitalize the city’s shipping industry. At the moment, investors in Qatar own (or have a sizable stake in) The Shard, Harrod’s department store, Chelsea Barracks, One Hyde Park, the Olympic Village as well as the building housing the American Embassy in London. Furthermore, Abu Dhabi owns numerous venues within the Olympic Village and has built a clean energy facility that generates electricity for approximately 20 percent of London’s households.
“When you look at the opportunities in London, there are 18 huge opportunity areas … ripe for development; believe me there’s plenty of room for investors, not just from the Middle East but from around the world.”- Mayor of London.
The Mayor of London, who is hoping to encourage even more investment from the region, recently revealed that London is interested in linking DP World’s port to a (yet-to-be-announced) new airport and that the City has already entered into discussions with organizations to facilitate the project; including Abu Dhabi-owned developer Mubadala and the Abu Dhabi Investment Authority. Motivated by the need to accommodate future growth and development, London’s population is estimated to grow by another 1 million people by 2021 and that is expected to put huge pressure on the housing market and transport infrastructure. This means that encouraging investor confidence and introducing new investment opportunities in the region is not only extremely important to rebuilding the economy, but also to sustaining growth over the next decade; as well.
The UAE, Dubai in particular, is looking forward to a strong economic future as their past infrastructure investments continue to pay dividends. Over the past number of years, Dubai has invested billions of dollars on their transport and port systems to put themselves into a better competitive position in the new global economy of the future. The UAE, was always heavily reliant on it`s oil exports but now the focus of the region is to increase other exports such as manufactured consumer goods and increase their imports as well. This will not only help grow and sustain their economy but will also help drive their local economies by providing more employment opportunities for the local residents, ever-increasing their GDP level.
Dubai is attracting more and more businesses and investors as a result of their stable/secure business practices, not to mention their bustling economy and alternatives for investors who are seeking refuge from Western markets.
“Dubai has invested significantly in ensuring that the emirate has the right infrastructure in place to support its growing economy. Dubai has some of the world’s leading multi-modal logistics capabilities. By sea, it is situated between more than 150 shipping lanes and is the third-largest hub after Hong Kong and Singapore.”- Executive Chairman of the Dubai Multi-Commodities Center Authority
There is little reason to not believe that the UAE will be a major force in the new global economy. They have the location, they have made wise investments, they have the growing consumer base, they have great new modern infrastructures and above all that, they have the money to make it prosperous. When you add it all up, they have a great plan in place to build a solid foundation for the region’s economic future and a means for investors to enjoy a great investing experience, when making investments that support the UAE’s growing shipping industry.
There is a conference coming up the near future in Dubai that will certainly have an impact on the future of global trade and the global economy. The Annual Investment Meeting (AIM) 2013, is to be held from April 30th to May 2nd, 2013 at the Dubai International Convention & Exhibition Center The theme of this year’s conference is, “A Future International Economic Landscape in the Making, Implications on FDI and the Economic Prospects of Frontier and Emerging Markets.” FDI stands for foreign direct investment. Among the countries that have already stated they will have representation at the event include Russia, China, United Arab Emirates, Saudi Arabia, Kuwait, Poland, Indonesia and other emerging markets from around the world.
As new emerging markets continue to prosper and contribute to the global economy, a conference of this kind, at this time in history, could very well indeed bring some clarity as to how the new era of a more-inclusive and prosperous global economy will unfold in the near future. With the Panama Canal expansion set to be completed sometime in 2015, the world’s nations only have a couple of more years to examine the framework of how the world’s economy and it’s participants, will benefit from this new economic world order presently shaping up. One thing is for sure, China’s investments will be a major influence on the future global economy, as it has the most to lose if things do not go well. Some experts believe that Chinese investors actually have the most to gain. Either way, they are the biggest participant and will be for many years to come.
To date, only Russia and Poland from the European nations have stated they will be participating and no mention so far as to whether the United States or Canada will be represented there. It would be wise for every global economic partner in the world, to attend this important gathering. This way, the world nations can all gain the same insight, as to where everyone could be heading in the near future; economically speaking. This is a great opportunity to create a solid foundation for global trade, that if created to maximize it’s enormous potential, all participants around the world will have an equal chance; to benefit and prosper. Furthermore, it will create investment opportunities and alternatives for investors, that will allow the business/investment community to make meaningful contributions toward building a profitable tomorrow; as well.