Presentation at the 12th German Arab Business Forum: Discussion Material

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Presentation at the 12th German Arab Business
ForumDiscussion Material

• Berlin, 25 June 2009

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SWFs from the Middle East represent the most
prominent investor class in terms of Assets under
Management
Top 10 SWFs (1)
Top 10 PE Funds (2)
(1) Fund size as of April 2009(2) Fund size
calculated based on direct-investment capital
raised or formed between 1 January 2004 15
April 2009Source Sovereign Wealth Fund
Institute, Private Equity International
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Long history of direct investments in Germany
with a focus on industrials
Selected direct investments in Germany

• Investments in large publicly listed companies
  have so far been structured as classical minority
  investments
• Unlike the global focus on financial institutions
  during the financial crisis 2007 - 2008, the
  investment focus in Germany has been on
  industrials (engineering, machinery, automotive)

Source Dealogic, MergerMarket, EY, DKIB research
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Long-term strategic goals will determine
investment criteria
Economic development

• Reduce relatively high dependence on
  (exhaustible) natural resources and the
  associated cyclical swings through economic
  diversification
• Broaden sectors of economic activity, enlarge
  enterprise base and grow external markets

1.
Social and human resource development

• Provide strongly growing population with high
  quality education and health services
• Ensure availability of a stable supply of high
  quality labour to staff the economy

2.
Infrastructure development and
environmentalsustainability

• Develop appropriate infrastructure to support
  economic growth while preserving the environment
• Establish world-class traffic and transport
  systems

3.
Source The Abu Dhabi Economic Vision 2030
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We would therefore expect to observe more direct
investments in the following industries
Information, Communication Technology (ICT)
Transport / Logistics
(Renewable) Utilities
(Petro) Chemicals
Financial Services
Education
Healthcare