Skip to comments.DP World's a US political punch-bag
Posted on 03/11/2006 2:20:43 AM PST by PrinceOfCups
Dubai: US Congressmen have sent a wrong message to the Arab world by opposing DP World's bid to manage container terminal operations at six American ports.
The hostility against DP World will further dent US credibility in the region, said Abdul Khaleq Abdullah, a professor of political science at UAE University.
"Dubai was forced out [of US port operations] as a result of racism and politicisation of a purely business transaction," he said.
DP World said on Thursday it would transfer P&O's American assets to a US entity.
Contacted by Gulf News yesterday, DP World chairman Sultan Ahmad Bin Sulayem declined further comment. We'll announce the details later," he said.
DP World does not make the issues of ownership and operations clear in transferring P&O's assets to an American entity, said Tim Power, an analyst with Drewry Shipping Consultants in London.
"DP World is showing goodwill that it takes US concerns of security seriously. But the company may still be studying its options about the level of participation and involvement after the assets are transferred to a US entity," he told Gulf News.
If it is a forced sale under political pressure, the company may have trouble getting the right buyer and price.
Saleh Al Shamekh, Dubai-based president of National Shipping Company of Saudi Arabia, blamed the politicking in the US for DP's World's woes.
"A lot of it has to do with local politics in America. Everybody is trying to find a cause to win [elections] and they found an easy target in DP World. It is so unfair to a country that is an ally and has done so much for the US," Al Shamekh told Gulf News.
Managing director of Saudi group Al Ruya Industries, Mowafaq Fahad Al Sunnid, said the issue will affect Arab-US business relations. "It is bad for business. Politics in the US will affect Arab investment there.
"Since 9/11 many Arab investors have brought their money from the US and invested in the GCC," Al Sunnid added.
"We respect them, they must respect us. What we have these days is a clash of cultures," he said.
Saad Abdul Aziz Al Zein, managing director of Abraj Properties and secretary-general of the Lebanese Business Council in Dubai, said the US Congressmen targeted DP World because it is an Arab company. "Takeovers by Dubai companies in other places have been successful. But [in the US] they don't want an Arab company to penetrate their markets," he said, adding the incident could scare Arabs investors from going to the US.
"Arab investors will think about other destinations. More investment will come to this region," Al Zein said.
What is the GCC?
"But [in the US] they don't want an Arab company to penetrate their markets," he said, adding the incident could scare Arabs investors from going to the US."
Good. Hope they don't invest here. Let them go to Eurabia to invest. It will soon be theirs anyway.
I hope everyone realizes the ports in Dubai COULD NOT BE bought by American companies, by law.
Under which law?
And you can bet that the taxpayers will be on the hook for the deference of what was paid for it when the deal went down earlier. And rightfully, the taxpayer should pay the difference! That's right: for collectively telling a foreign investor that "your capital infusion is not appreciated here because we view you as an enemy - okay, only a potential one - but still we need you to sell because we're afraid of you", we will not be able to also tell them that, "Oh, and by the way, even though we're going to force you sell your interest in this asset, it is none of our concern that you lose money when you're forced to sell it. Have a nice day!"
You better believe that we're going to pay for this with some form of reparation...and don't be too surprised if there won't be some form of trade retaliation either. At the very least, we have sent the wrong kinds of signals to the capital markets and have probably just slipped off of the top 10 of the 2006 Index of Economic Freedom.
I hope we're proud, are accepting of the coming recession, like the step backward from the embrace of capitalism, looking forward to the Republican Party demographic shift when the capitalists leave it, and more unlikely alliances between talk radio personalities and Big Government-loving senators.
The shark has been jumped, fellow FReepers, and some of you who are proud of your contributions to these developments now, will also be too pigheaded [and not bright enough] to understand the negative consequences that will probably happen later.
Sheesh, based on your post, we should just all apply for Dutch citizenship and have the doctors do euthanasia on us. Is the sky still up in the air where you live? I wonder?
Of course they were not buying ports here either
I think the unions had a big hand in winning this one, that's if it can be called a win.
But, other than writing "are accepting of the coming recession" [which may have been over-the-top], tell me where my reasoning for such depression is unwarranted.
Im glad you took my post with a good heart. I meant it that way. Too many folks here are way to sensitive anymore. Now to you worry about the coming recession, yes its coming, but not because of Dubai and the ports. The economic fundamentals are all in place to give us a recession, imo. These things come and go, just make sure you have made some provisions to weather it thru.
How does one say "tough toenails" in Arabic?
Under their law.
We will pay for it! And when you read about it, "tough toenails" may not be the first thing take comes to your mind..."male cow excrement" (or worse) may be the phrasing of choice.
Hopefully not a recession, otherwise agree.
Nor can our PORTS be bought by foreign investment. Terminal operations contracts...yes. Ports... No!
More dim propaganda passing for truth I see.
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