A Confusing Picture.. regardless true or fabricated..!
Gulf countries are missing out on US$1 trillion (Dh3.67tn) worth of infrastructure projects in India http://bit.ly/eCcdcL
Dear Dr Saidi..
I do value and follow your picks and notes..
I hope to avoid the unnecessary row..!!
I’m not an economist nor investment professional, yet during the last few years, had closely observed the stakes of GCC (Mubadala & KFH) in Malaysia, had lots of insights on corporate structures (Dubai Properties, Nakheel, Tatweer and Qatari Diar), in addition to the chronicles of the bubble since 1996..
I can say that the culture of investment is different (never win-win), breakdown of products & services is special (Cheap migrant labors, Almost no tax & High consuming trends), and confusing strategies (over supply, over sppecify and over valued) .. Maybe overwhelmed by lots (incompetent decision makers); which raises the said question..
If the world’s top officials are racing for that $1Trillion cake; are there traces of priggism or fierce which drive the frozen actions?
Or just both SWFs and Conglomerates are not efficiently-governed to compete..?
I shall appreciate your reply
Adil
Hi Adil:
ReplyDeleteInvesting in India infrastructure is not easy given their planningpermission process & bureaucracy which can unduly lengthen the processand reduce expected returns on investment. There are also issues oftaxation. Gulf investors find it easier as a result to focus on theirhome and GCC territory opportunities.
Regards
NSaidi
Thanks Dr Saidi for your reply..
ReplyDeleteHowever, I need to disagree a little; from my own point of view
Yes, all ex-British-colonized countries have complex, phenomenonal and easy-corrupt civic service..
Yes, it took us 3 years to complete the due diligence and create incentives for FDIs in Malaysia..
Yes, Asian are always suspicious about foreigners; especially Arabs, when it comes to cash-flows..
Yes, we as Muslim Arabs, have many barriers in creating close business relations; which are historically set by the Chinese; and usually launched and cemented by ceremonies around food, drinks and sex..!!
However, I believe the core hurdle is none of the above, but the “Governance” driving planning and decision making..
Despite the efforts of yourself, and many others; Arabic institutions and corporates are still immature in their performance.. (Only Allah knows when they would grow..!)
Otherwise, Hawkamah would not be there; enlightening, educating, and fighting as well..
Business is a typical endeavor, with hardship processing, time consumption and costs to endure..
I believe many business drivers are not in agreement with this, as used to easy catches..!
Maybe historically Arabs were Merchants not City-Builders..? (Main Arab cities been built by others..!)
Maybe this is one of the reasons of the busted bubble..? (Overwhelmingly-optimistic-trends)
When GCC-Developers penetrated the South East Asia, they were driven by “rumors” of outstanding profits rather than “good” business endeavors..
Therefore, they could not wait for the maturity required for the opportunities; to celebrate the large dividends..!!
Series of broken commitments had added to ignoring CSRs in high-volatized-politically-driven countries.
Then, the great divide, as historical and cultural referrals hide lots of bitter centuries-old-experiences; since the early Arab sailors had landed on those tropical shores.. (No one tells..!)
When I asked your reply, I was certain of "Governance" as the key for answer..
Your brief reply; doubled my convection..
Thanks