Dubai is among the Gulf states turning their sights on big domestic projects as the full implications of the Western credit crisis make themselves known
David Robertson
Sovereign wealth funds in the Gulf are switching their focus away from Western stock markets to shore up ailing economies in the Middle East and protect themselves from losses in the City and on Wall Street.
Investment funds in Kuwait, Qatar, Dubai and Abu Dhabi are understood to be changing their investment strategies after losing billions of dollars buying shares in Western companies. Several Gulf-based banks are being propped up with state investment. Local stock markets have collapsed and some funds are shifting their assets into local shares in an attempt to inject confidence.
The Kuwait Investment Authority (KIA) has shifted $4 billion (£2.6 billion) from Western markets into its own bourse and the Qatar Investment Authority has begun a bailout of local banks. Dubai International Capital (DIC) is concentrating on emerging markets and rumours have spread that the Abu Dhabi Investment Authority, a $700 billion oil fund, is retreating to local markets.
