Citigroup Gets Mideast Money
The Abu Dhabi Investment Authority announced a deal today to take a 4.9 percent stake in Citigroup for $7.5 billion. Called a sovereign wealth fund, the government-run investment arm has ballooned as the price of oil has risen. The small, oil-rich United Arab Emirates now has an estimated $850 billion to invest.
Abu Dhabi Dabbles in Tech
In November, another Abu Dhabi-run fund, the Mubadala Development Company, invested $622 million for an 8 percent stake in the chipmaker Advanced Micro Devices. While most foreign direct investments are merely passive ones, this deal includes a board seat for a representative from the fund.
Barneys' New Sovereign Owner
In June, a Dubai fund called Istithmar won an international bidding war for the upscale retailer Barneys New York. It agreed to pay $825 million to own the retailer outright.
China Eyes Private Equity
China's State Investment Company invested $3 billion into the Blackstone Group in May, before the private equity firm went public. Its stake is less than ten percent. China has amassed an estimated $200 billion for investments, and its fund will likely only grow as its economy rapidly expands and its currency reserves build up.
Qatar Plays Stocks
In September, the London Stock Exchange announced it agreed to sell a 20 percent stake to the Qatar Investment Authority. On the same day, the Dubai Borse agreed to buy the Nasdaq's 28 percent ownership in the L.S.E.
Sony is a Hit in Dubai
Dubai International Capital announced earlier this week it has bought a "substantial stake" in Sony.
Dubai Gambles On MGM
Gambling may be prohibited in the Muslim world, but casinos can make good investments. Dubai World bought 4.9 percent of MGM Mirage earlier this year.
Back to: When Oil Money Comes A-Callin'
