Arab Firms Reassessing US Holdings

Conventional wisdom suggests that Arab nations and investors would scorn US investments after the US Congress objected to a Dubai firm taking over management of six major US ports. There is fear that the rejection of the deal, reflecting anti-Muslim bias, could trigger a short- or long-term backlash. Yet analysts report that the US – representing 50 percent of the world’s economic market – remains a lucrative arena for investment for Gulf nations rich with oil profits. Arabs will undoubtedly study their investment portfolios, checking for other deals with security implications that could prompt similar outrage. But Arab investors may also step up lobbying efforts, making more friends in Congress, to prevent future rejection. Meanwhile, US officials keep their fingers crossed that the US military will not be blocked from UAE bases. – YaleGlobal