Dubai to invest in Standard Chartered

9 October 2006

Istithmar, the investment arm of Dubai's ruling family, has bought a stake in UK-based Standard Chartered worth $1 billion, it has been announced.

The Company said that it had been attracted to the bank by its strategy of acquisition led growth, as well as its "strong focus" on Asian investment, making it ideally positioned to benefit from the current growth in the emerging Asian markets.

"The bank's strong franchise, impressive growth and recent acquisitions place it in a unique position to provide shareholder value," commented David Jackson, Istithmar chief executive.

"Istithmar looks forward to a long and close relationship with Standard Chartered."

It is currently estimated that Standard Chartered makes around two thirds of its profits in Asia, with 90 per cent coming from emerging markets in general.

Observers have said that the move by Istithmar is part of an effort to diversify Dubai's economy amid concerns of over-reliance on oil revenues.

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