DP World's a US political punch-bag

Gulf News ^ | March 11, 2006 | Shakir Husain

[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.

[Echo Talon]

I hope everyone realizes the ports in Dubai COULD NOT BE bought by American companies, by law.

Ours can't be bought either... only leased.

[CowboyJay]

"We will pay for it!" Yup. And more of the money will likely go right back into our domestic economy, where it came from in the first place. Am I missing something here?

[veronica]

I recently had the opportunity to speak with someone who has great knowledge on this issue. Hands-on knowledge. He thinks this deal was a stinker and he's glad it got KO'd. It was good to have my instincts confirmed as accurate.

[Just mythoughts]

I do not think those who knew what they were doing, and those that followed are the least bit interested in the consequences.

There is no anger at the Clintons for their profiting from this deal on both ends. Monetarily or politically. Seems to me IF UAE is tooooo evil to park ships in our ports then they are tooooo evil for a former co-president, first senator to enhance her living standards.

[thoughtomator]

So I guess the USA is the only country in the world with no right to act in its own best interests and no right to respond to insults done to us? Buying a ticket on American Airlines Flight 77 was a simmple business transaction as well. If the USA reacted the way we are told the UAE will react, we'd be retaliating against almost every country on the planet.

[LowCountryJoe]

I'm not sure of the details but let's assume that the Dubai (sp?) company bought the rights to manage port operations for 6.8 billion dollars...they've bought it already either with money they've borrowed or they've done it outright with cash [if borrowed, they still have an obligation to repay the loan under the terms the loan was issued]. Now let's say that they cannot fetch the same 6.8 billion dollars when they are forced to sell their rights to operate...let's say the highest bid is 5.8 billion. Don't you think that they will petition the government to recoup that one billion dollar loss? Don't you think that the taxpayer will be 'on the hook' for that one billion?

[Sonora]

Great post, LowCountryJoe. This is such a no-brainer it's difficult to understand the reactions of a lot of Republicans. Although, I'm behind Bush 100%, he's not much of a salesman when it comes to this kind of event.

The bottomline is this: Why not have some "trusted" Arabs 'involved' in operations activities within the ports - would it not follow that they would do everything possible to protect the ports, e.g. keep their eye to the ground in the Arab world, etc.?

[JCEccles]

"Dubai was forced out [of US port operations] as a result of racism and politicisation of a purely business transaction," he said.

Wake me up when Muslim immigrants and Christians start fleeing the racist US for the delightful shores of the UAE.

Hypocrites.