Firmly held by DIC; crisis still to hit bottom
Though the global crisis has not hit bottom, still there are opportunities for investing in firms with potential, expressed Dubai International Capital (DIC), an investment firm owned by the ruler of Dubai.
The Company’s Chief Executive Sameer Al Ansari said that he doesn’t think that the company is in a major depression; however he did agree that the company is in a serious recession that will take a few years to take through.
About DIC- It is one of the groups of Gulf Arab funds and investment vehicles and is owned by the ruler of Dubai and controls around $13bn in assets. Recently, it lost billions in the financial crisis due to declining value of stake in top Wall Street firms.
At the sidelines of the annual meeting of the World Economic Forum, Al Ansari put forward that no financial liquidity problems to meet any of its investment commitments from its massive buying spree were faced by DIC.
He added, “We don't have a shortage of capital, we have plenty of cash on our balance sheet. We have funding available to us.”
The company has become more unwilling to spend on cheaper assets after losses made by Gulf Arab funds and investment vehicles, and it will take on this track until the market hits the bottom.
It should be noted that DIC is seeking opportunities within its broad diversified portfolio in certain firms and sectors such as healthcare and infrastructure that are becoming more cost effective, though the company is now putting an end to its aggressive buying spree.
Ansari further added, “If one was to take a two-to five-year view, there are great opportunities out there. Our view today is that we are in no hurry to invest and we have to do more homework to understand what the new world is going to look like in a year or two.”
Ansari concluded that the company would concentrate on building its broad portfolio; however he did not give further details.
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