A Queue in the Sand

The Middle East is rich with oil money, ready to invest in all kinds of megadeals, reports BusinessWeek. For example, state-owned Abu Dhabi Investment Authority stepped forward to buy a $7.5 billion stake in Citigroup, a bank ailing from the US sub-prime mortgage crisis. Some borrowers purchased homes with loans that offered low rates for only a year or two; as the rates increase, the homeowners can no longer afford their payments, causing problems for banks and other investors who hold these loans. As a result, oil-rich firms and countries look for bargains inside the US. “Decision-makers in the Gulf are also a lot more savvy than in the past,” write the team of writers for BusinessWeek, with one analyst noting that “These days, projects aren't likely to get far unless they offer the prospect of local job creation and knowledge transfer.” The savviest of investors have a sense of purpose, seeking to create a legacy rather merely pursue profits. – YaleGlobal