One of the most powerful investors in the Middle East says Dubai World will be less likely to invest in those countries where greater transparency is being sought for sovereign wealth funds.
Sultan bin Sulayem, head of Dubai World, tells the Financial Times, said such moves to regulate SWFs are discriminatory and would dissuade him from investing. Europe is now exerting more pressure on SWFs than the U.S., Sulayem said.
“People who have money to invest, if they hear that somebody’s going to discriminate against them, they wouldn’t go there,” he said.
Western officials are wrongly placing Dubai’s government or ruler-backed investment companies with SWFs which puts them at a disadvantage from competitors such as private-equity funds, he said.
The European Union has been pushing since last year for a voluntary code of conduct.