Arab investors likely to continue pull out from US markets

[Oilwellian]

Billions of dollars are likely to be withdrawn from US markets, explained top financial experts attending the recent Islamic intra-investment conference in Almaty, Kazakhstan, ending September 3, 2003. Losses suffered by Arab investments abroad due to the global economic slowdown are already estimated at over $400 billion.

The fifty-seven Islamic countries represented at the event, also members of the Organization of Islamic Conferences (OIC), expressed uneasiness about investing in the United States. Arab depositors describe the once attractive market to be increasingly unwelcoming since the September 11, 2001 attacks. The change of heart is primarily linked to calls in the US to freeze assets of Arab or Islamic investors suspected of terror funding.

Arab funds abroad are estimated to be as high as $4.2 trillion. The conference also highlighted that OIC states have failed to loosen the Western hold over foreign trade of the region. As late as 2001, OIC merchandise exports totaled $520.2 billion, only 8.6 percent of the total world merchandize exports that year, reported Arab News.

OIC is an inter-governmental organization grouping fifty-seven Islamic states. It was established in 1969 with the purpose of strengthening cooperation in the political, economic, social, cultural and scientific fields between member nations. —

http://www.menareport.com/story/TheNews.php3?sid=258611&lang=e&dir=mena

[Old and In the Way]

1. Wanna know why we chose Iraq to invade and not SA?

I think this explains the situation pretty well. I remember how George was going to "drain" the financial swamp shortly after 9/11....that got stuffed pretty quick, eh? Wonder if Dad explained the facts of life to him....

[DuctapeFatwa]

2. The regime will declare divestiture to be terrorism and freeze the $

Iraq is just the prototype. The plan is to seize the natural resources of the entire region.

[nothingshocksmeanymore]

3. Given the assets that have been frozen on weaker evidence

One has to seriously ask why they aren't.

[teryang]

4. The regime is den of thieves

Pure and simple.

[uptohere]

5. I'll believe it when I see it

so long as we have quality investment opportunities, and we do, they will stay. Money talks...

[MariMayans]

6. like what?

I suppose Haliburton and Bechtel are good bets but no one else is doing that hot or looks to be doing real hot in the future.

[quinnox]

7. Yup

I don't know much about this source, but it looks shaky. Last report I saw showed foreign investment increasing in the U.S. markets.

[aneerkoinos]

11. Was that

Chinese and Japanes buying US bonds to fight weak dollar and Bushco sucking more and more debt, or was there something else noteworthy?

[DBoon]

10. This will change

I'm sure Shrub can easily eliminate our "good investment opportunities". Give him a chance - he has eliminated all else.

[TreasonousBastard]

8. Coupla small points.

Arab investments have been steadily declining anyway. Most of the oil countries have overextended themselves, and have little surplus oil revenue to invest. I'd have to check, but I seem to remember that SA is actually running a deficit. And they tend to import more from Europe than us.

In most cases, it seems that the lack of other-than-oil exports is due to their inability to build a manufacturing or service infrastructure that can make money. The sheiks just aren't very good at running businesses, no matter how good they are at creating no-show jobs.

It is worrisome, however, that they would consider pulling whatever investments they have out of here. It is also worrisome that they would consider reducing their already minimal imports.

The freezing of "charitable" assets has bothered me for a while. All Muslims are required to tithe to charities, and this creates vast networks of funds. While some of them may be shams, the money is so fungible that every one of them could be accused of funding terrorism, whether they intended to or not, or even of they had no knowledge of it.

[aneerkoinos]

12. You are right about SA debt

They got huge population explotion, poor education so the few good jobs available go to foreigners and all that oil money is hardly sufficient to pay for their tanks and fighter jets and other useless toys plus the modest sums to keep up the humble lifestyle of the royal family of only few tens of thousands ;). To keep the population at least relatively docile they need tons of debt.

Point two: when US demands declarint the political wing of Hamas terraist and freezing the money of their charities, they are practically demanding starvation of the Gaza Palestinians. I'm ashamed that EU bend down on these demands.

[Don_G]

9. It Might Be Worse Than That

Foreign investments in the US are now $2.3 Trillion+ than the US has invested overseas. I believe the OIC, China, Japan and Singapore holds a large part of the imbalance.

Link here: http://www.bea.doc.gov/bea/newsrel/intinv02.htm

What if ShrubCo pissed off the OIC and decided to make a deal with the Asian nations? There's a good possibility it may happen IF Dimbo isn't taken out in 2004.