Some observers now expect substantially less noise in the international markets from such operations as Istithmar, which is part of state-owned conglomerate Dubai World; and Dubai International Capital (DIC), which is part of another conglomerate, Dubai Holding. Even Qatar Investment Authority, a more conventional sovereign wealth fund, will be slightly more subdued, according to some analysts, as its investment model includes leveraged buyouts.
"The model of some so-called sovereign wealth funds of borrowing and then investing in high-profile assets is perhaps at an end," says Mushtaq Khan, Middle East analyst at Citi.
Dubai, Khan reckons, does not even have a sovereign wealth fund. "Dubai has investment companies that borrow and invest. A sovereign wealth fund, in my view, is an accumulation of capital surplus, not a leveraged company," he says.
DIC and Istithmar have indeed invested in high-profile assets around the globe. They are an integral part of the extremely...
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