Friday, 12 April 2013
UK Shipping Industry is in Need of Foreign Investment Money
Building and maintaining the UK’s transport infrastructures are essential to the country’s future economy and it is evident that much more investment is needed before the nation can reach it’s full potential. The UK only has so many limited investors domestically that have the money and the means to fund these massive capital investment projects. As a result, it has had to seek sizable private investment from investors in other countries. The UK is not alone in looking for funding for much-needed infrastructure projects and port improvements. Most countries in the world have found themselves in the same financial situation, as they all attempt to prepare themselves for the (expected) doubling of the global economy, by the year 2020. Every nation wants to be ready to contribute and compete, but like the UK, many lack the investment money. As a result, major foreign investors with the liquid capital and available credit to invest, have many choices as to where to invest and what to invest in.
The UK is attracting some investment from the oil-rich and cash-positive middle east countries such as the UAE and Qatar. Dubai’s DP World, one of the world’s largest port operators, already has a huge stake in the soon-to-be-completed London Gateway. Their £1.5 billion investment has created thousands of jobs, while stimulating the local economy. As well, it was just recently reported that Qatar is considering investing approximately £10 billion in infrastructure as well as energy and other projects in the near future. Although it is early in the discussion phase, industry experts say it looks promising. These examples of market opportunity truly define the global economic free-enterprise market system. The reality is that in the credit-based global economic system, cash is still king. That being the case, rich nations such as the UAE and Qatar are just taking advantage of their surplus cash and using it to make wise investment decisions.