DUBAI Aug 28 Restrictions by the United States
and others may lead sovereign wealth funds to invest closer to
home instead of in the West, the head of the central bank for
the United Arab Emirates was quoted as saying on Thursday.
According to a document in bullet-point form quoting UAE
central bank governor Sultan Nasser al-Suweidi, such a scenario
would trigger a "a new regional developmental cycle" in the
"Regulations regarding SWF might lead to ... fund becoming
more passive investment vehicle or change direction of
investment flows," according to the document, presented at a
Japanese business conference held in Dubai.
Sovereign wealth funds such as the UAE's Abu Dhabi
Investment Authority, the world's biggest, have poured billions
of dollars into ailing banks and firms in the industrialised
economies in recent years.
But fears of foreign influence by the new stakeholders,
whose wealth has mushroomed due to the high price of oil, has
sparked an intense debate in the United States, Germany and
elsewhere about curbing possible influence by the funds.
(Reporting by Inal Ersan, Writing by Thomas Atkins; Editing
by Gerrard Raven))