The German Fund Raising Tour in Dubai

Eight German multinational corporations are on a fundraising tour in Dubai trying to collect up to 15 bln EUR. The CFOs are from Siemens, SAP, Daimler Chrysler, Lufthansa, EADS etc. Goldman Sachs has organized this roadshow. Dubai Holding’s finance arm, Dubai International Capital (DIC), is keen to invest some of its last petrodollars (in 4 years Dubai will have no oil left) into German companies that are relatively cheap right now but promise good returns. Dubai’s ruler sheikh Muhammad bin Rashid Al Maktoum already owns real estate en masse in the US, has bought hotel group Travelodge in the UK, and of course invested heavily into Dubai with the vision of having 10 million inhabitants some time soon. The head of Dubai’s stock exchange is a German, who may also have helped with the roadshow behind the scenes.

Since the US is no longer so attractive for investments, European companies - and now in particular the Germans - are on their shopping list, next to million dollar racing camels and gold jewelry. The difference will be, though, that the latter are longer-term private “investments”, whereas the German companies will serve as short and mid-term speculations, with good ROI expected.

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