Page 30 - Aamir Rehman Gulf Capital and Islamic Finance The Rise of the New Global Players

Introduction 15

In 2008, the Abu Dhabi Investment Authority issued a published
letter declaring its investment objectives. The letter marked a major
step toward disclosure, and reflected a drive toward proactive com-
munication so as to allow the discussion to take place on ADIA’s
terms rather than being imposed by outside bodies. As financial regu-
lations tighten worldwide as a reaction to the global crisis, greater
scrutiny of and increased government involvement in regulating
investment flows can be expected. In this environment, the trend
toward greater transparency by Gulf investors is likely to continue.

Part III: Global Implications
The discussion of key trends in Gulf capital and Islamic finance leads
to a consideration of the implications of these trends for international
actors and global markets. Part III of the book focuses on what the rise
of these global players means for firms, markets, and decision makers
worldwide.
Chapter 9 discusses strategies for attracting GCC investors—a
topic that has been increasingly important in recent years, and a criti-
cal one in these capital-scarce times. We discuss how there is no “one
size fits all” approach to tapping into Gulf capital, as the objectives
and preferences of Gulf investors vary greatly. Therefore, managers
and advisors must make the effort required to understand the strate-
gies and styles of the specific investors they are seeking to attract. As
the competition to attract Gulf investors has intensified, some of the
old assumptions about doing so no longer hold. A widely held
assumption that Gulf investors are “easy sells” who will neither push
back nor ask tough questions is now far less accurate, as the region’s
institutions have become more sophisticated. Also, it has become
increasingly important to have at least some level of in-market physi-
cal presence in the region. As more and more investment managers
seek Gulf capital, having a presence there helps them demonstrate
their commitment to the GCC and to its investors, and also allows
relationship managers to have deeper ties to their clients. While the
actual investment managers may generally be more appropriately
based where the assets are, firms that are seeking to build ties with
GCC institutions can be well advised to have some investor-facing
resources in the region.
Another important change with implications for attracting Gulf
capital is an increased focus—at least among some Gulf investors—on
strategic partnerships and ongoing co-investment opportunities. For