Investments by UAE in Europe stand at $700bn

The UAE’s investments in Europe currently amount to $700 billion (Dh2.57 trillion), said European Union Commissioner for the Internal Market and Services Charlie McCreevy.

According to a Kuwait News Agency (Kuna) report, McCreevy and EU Monetary Affairs Commissioner Joaquin Almunia at a joint news conference on the current financial turmoil and sovereign wealth funds stated very clearly that Europe needs sovereign wealth funds as it wants them to continue capital injections in Europe.

McCreevy said one of the major sovereign wealth funds in the last 30 years is in the UAE, which has about $700bn investments in Europe, and is about treble the size of China and Russia’s wealth funds combined.

“And by our present standards I don’t think we can say they have a transparent way of doing things. But nobody has had any difficulties at all because we are used to them as investors. They have been excellent investors,” he said.

“What is abundantly clear is that we need these funds to recycle their surpluses by continuing to invest in Europe. There are many financial institutions throughout the world that would be in some difficulties today if it was not for the much-needed capital injections made by certain sovereign funds.”

Almunia stressed a code of conduct for sovereign wealth funds represented a “win-win game” for both the funds and the recipients of their investments.

He said according to some estimates total assets under management of sovereign funds in the world are between $2.5trn and $3trn, Kuna reported.