Page 253 - Aamir Rehman - Dubai & Co Global Strategies for Doing Business in the Gulf States-McGraw-Hill (2007)

Capable Capital: The GCC as a Source of Capital 235

easier and more competitive in the UK. Even the United States has
now entered the market—with the Texas-based firm East Cameron
Gas Company issuing the first-ever American Sukuk in 2006. 32
These entities all saw value in taking the additional steps needed to
ensure Sharia compliance.

SOURCING CAPITAL: STRATEGIC
OR ACCIDENTAL

There is no shortage of examples of global companies for whom
GCC investors make up a meaningful segment of their investor
base. Apple and Citigroup, for example, count Alwaleed Bin
Talal as one of their largest shareholders. Investor relations
professionals at major listed companies may, in fact, be surprised at
the number of GCC investors who subscribe to their shares—
investors who can often be less vocal than large OECD mutual and
pension funds and therefore somewhat overlooked. Gulf investors
wishing to avoid media attention may also limit their stakes to
under the public disclosure threshold, which is 5 percent in the
United States, Japan, France, and Hong Kong, and 3 percent in
Britain and Germany. 33
Private-equity investment and strategic acquisitions have
brought GCC buyers into the limelight more than passive owner-
ship stakes in listed companies. Some of the high-profile entities
that have been or are currently portfolio companies or subsidiaries
of GCC institutions are listed in Table 8.3. While the list is far from
comprehensive, it captures some of the breadth of companies in
which Gulf investors have controlling or large minority holdings.

TABLE 8.3

Prominent GCC Portfolio Companies 34

Ownership
Country Investing Entity Portfolio Company Stake
UAE Istithmaar 35 Standard Chartered 2.7%
DIFC Investments 36,37 Deutsche Bank 2.2%
Euronext 3.5%
Jumeirah International Essex House (NY) 100%

Continued