Dalian: Investment protectionism is a barrier to global economic growth and developed nations should avoid this practice, Emaar Properties chairman Mohammad Al Abbar told international business and government leaders assembled at the World Economic Forum in Dalian, China, at the forum's opening plenary session on Thursday.
The United States and members of the European Union should instead do their best to create a level playing field and serve as role models for the rest of the world, he said.
"Investment is a bonus for nations, companies, industries and individuals, whether it is the case of DP World acquiring P&O or Borse Dubai trying to acquire additional equity in OMX," Al Abbar said.
"The Middle East has the liquidity, and should be given the opportunity to move into established and developing markets. Only when the large economies of the world take their foot off the brakes will growth advance," he said.
The World Economic Forum's inaugural Annual Meeting of the New Champions at Dalian, focused on the new generation of fast-emerging multinational companies.
Likened to a "Summer Davos," the high-powered gathering of business, industry and government leaders has drawn more than 1,700 participants from 90 countries.
The Emaar chairman also advised the Arab world to get its own house in order before expanding internationally.
"Sovereign wealth funds, particularly those originating from the Arab world, should be more transparent and open about their intentions," Al Abbar said. "We should take this step voluntarily, before we are forced to do it. It is in our own best interests." The investment arms of city and state governments around the world, sovereign wealth funds account for an estimated $2.5 trillion in assets, according to recent estimates. Some of the largest such funds originate in the Gulf.
Additionally, five nations in the Middle East hold $1.7 trillion in their central banks, the largest single concentration of assets in the world.
The centre of global wealth, Al Abbar said, is shifting from the Atlantic Ocean to the Indian Ocean, creating the right conditions for the new global champions from the Middle East and Asia and the basis for the new world economy.
The other participants at the plenary session included William Rhodes, Chairman, President and CEO of Citi North America, Heizo Takenaka, Director of the Global Security Research Institute at Japan's Keio University and member of the Forum's Foundation Board; Wei Jiafu, Group President and CEO of the China Ocean Shipping Group, and Kristin J. Forbes, Professor of Economics at the Massachusetts Institute of Technology.
By Staff Reporter
© Gulf News 2007
