The weak dollar is generating a lot of interest from foreign individuals and companies, interested in investing in the American economy. Particularly in the property sector. According to U.S. Real Estate agents in the last 12 months there has been overwhelming number of Europeans investing in the U.S. With the mortgage industry in the United States becoming so stringent with loaning money, the rental market is really increasing, and thus allowing investors from other countries to buy cheap and lease quickly.

European investors therefore have more purchasing power and are increasingly on the lookout for property bargains on the other side of the Atlantic. On top of the currency rate, the U.S. housing market has been hit hard by the credit crisis, which has made properties even more attractive for Europeans stunned by sky-high house prices in their home countries. In a survey, the National Association of Realtors found that Florida led the nation in foreign home buying, accounting for 26 percent of all international purchasers. California was next at 16 percent, followed by Texas at 10 percent.

The survey found that 34 percent of Realtors in Florida have worked with an international client in the past year. Some 34 percent of the foreign home buyers in Florida were from Latin America and 21 percent were from Britain. About 9 percent came from Canada and 8 percent from Germany. The rest were from Asia, Eastern Europe and other areas.

Steven Toumbas, an equities investor from London, has just purchased a $1.2 million apartment in the luxury Trump Soho development in Manhattan. “I’m buying property at bargain prices in New York City, which I think is the most stable market in the States,” he said.

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New York City
It is not only private individuals eyeing the current US housing market - The Dubai government agency that bought into Deutsche Bank earlier this year said it could invest in U.S. banks, property and other sectors after the dust settles on a mortgage crisis, “There are good opportunities and the prices are good, but is this the bottom or is there more downturn to come?” Omar bin Sulaiman, governor of the Dubai International Financial Centre (DIFC), told Reuters on Monday.

Both Merrill Lynch and Citigroup, the largest U.S bank, replaced their chief executives this year after reporting credit market losses of at least $21 billion between them and are likely targets, but when questioned about specifics, Bin Sulaiman refused to be drawn out, “Without mentioning names we have a track record of taking stakes in major banks, with the right partners for management,” he said. Like many private investors, DIFC seem to be waiting to see if the crash has bottomed out yet.

DIFC Investment’s purchases in the United States could include property, telecom, and oil and gas assets, bin Sulaiman said. Defaults on subprime mortgages drove up borrowing costs around the world and prompted banks to shrink from riskier lending, making it more difficult for private equity funds to finance acquisitions.
The collapse of takeover bids, including Qatar’s plan to buy British supermarket chain J. Sainsbury Plc (SBRY.L: Quote, Profile, Research), and a tumble in stock prices this year has made assets cheaper.

“The challenge is how low do we look. There are good assets in the U.S., good opportunities for acquisitions to be identified,” bin Sulaiman said, “The price has to be right and you need to understand the strategy of the organization and if that aligns with our strategy, the decision is easier.”

Bin Sulaiman leads the financial services strategy of Dubai, which created the DIFC, a self-regulating dollar-based investment zone, to capture banking and other business in the world’s biggest oil-exporting region.

Having turned state companies into the world’s eighth largest airline, Emirates, and fourth largest port operator, DP World, Dubai plans on building two of the world’s 10 largest financial institutions by 2015.
“It could be through acquisitions or home-grown,” bin Sulaiman said.
DIFC Investments bought a 2.2 percent in Deutsche Bank this year to become the fifth biggest shareholder of Germany’s largest bank. The purchase was worth about 1.35 billion euros ($1.97 billion) at the time the deal was announced in May. DIFC Investments is looking to invest about $1.8 billion in an unidentified publicly traded financial services company among the 20 acquisition targets it is evaluating, although moves are already underway – state owned Dubai investment firms have made sizeable investments in both Standard Chartered Plc and HSBC Holdings Plc recently.

INVEST IN AMERICA

Foreign direct investment (FDI) plays a major role in the U.S. economy, both as a key driver of the economy and an important source of innovation, exports and jobs. The United States has always provided foreign investors a stable and welcoming market. As a place to do business, the United States offers a predictable and transparent legal system, low taxes, outstanding infrastructure, and access to the world’s most lucrative consumer market.

Invest in America is the primary U.S. Government mechanism to manage foreign direct investment promotion. Efforts are focused on outreach to foreign governments and investors, support for state governments’ investment promotion efforts, and addressing business climate concerns by serving as ombudsman in Washington for the international investment community.

USA Profile

There is no question that investing in the United States brings with it many advantages. With more than 300 million people and the largest economy in the world, the United States is the most important market for any global company. The American workforce ranks as one of the best educated, most productive, and most innovative in the world. As a place to do business, the United States offers a predictable and transparent legal system, outstanding infrastructure, and access to the world’s most lucrative consumer market. More specifically, some of the advantages of investing in the United States include:

Economy: The United States has the largest and most technologically advanced economy in the world, with a per capita GDP of approximately $45,000. The systems of regulation and taxation in the United States give foreign investors unparalleled operational freedom. Furthermore, the United States consistently ranks at or near the top of most major indicators of an attractive business and investment climate. The United States is the most consistently competitive, innovative, and open economy in the world. In its 2006 Business Competitiveness Index, the World Economic Forum (WEF) ranked the United States first, looking at business environment conditions and sustainability of national prosperity.

Consumer Market: One reason global companies invest in the United States is to be closer to their suppliers and customers in a dynamic market. The United States accounts for 42 percent of the global consumer goods market, with a per capita disposable income of approximately $32,000. In addition, the United States maintains free trade agreements with 14 partner countries, giving foreign investors in the United States access to diverse markets around the world.
Research and Development: The United States is a center for global innovation. In 2006, the United States was responsible for 45 percent of total research and development expenditures within OECD countries. Since 2000, the United States has been home to more Nobel Laureates in the sciences than all other countries combined.

Technology: American companies are leaders in technological advances and innovation. Foreign investors invest in the United States for greater risk-adjusted return on investment in an unparalleled investment climate. Our markets are open to products, ideas, and above all, innovation. Among Business Week’s Top 100 Information Technology companies, 45 are U.S. firms. In its 2006 Global Competitiveness Index, the WEF ranked the United States first for innovation, market efficiency, higher education and training, and business sophistication.

Intellectual Property Protections: The world comes to the United States to invest in research and development and to commercialize the results of their creativity. The United States provides a strong regime of intellectual property rights protection and enforcement. Of the 173,000 patents granted by the U.S. Patent Office in 2006, almost 50 percent of the applications originated from a foreign country.

Education: Six of the top ten universities in the world are in the United States, according to the Times Higher Education Supplement. There are more than 4,000 universities and colleges in the United States. Over 56 million Americans have obtained a Bachelor’s degree or higher. In addition, more than 500,000 international students - about a quarter of all international students worldwide - were enrolled in American institutions in 2004. Many community colleges have tailored training programs to investors who locate facilities in their area. In addition to the massive number of Americans with post-secondary degrees, the federal government spent an estimated $23 billion on workforce training in 2005, and state governments spent billions more.

Productive Workforce: Investors in the United States gain access to a highly productive and adaptable workforce. Since 2000, U.S. business productivity has risen at an average annual rate of approximately 3.2 percent. On average between 1992-2006, American labor productivity in manufacturing has grown faster than any other country in the G-7.

Transportation/Infrastructure: Of the top ten world economies, the United States has the largest roadway system, railway network, number of airports, and quantity of Internet hosts. Five of the top ten airports by air cargo volume are in the United States, including the busiest cargo airport in the world. The United States is also home to some of the world’s busiest international bulk cargo and container handling ports.

Hospitable Society: The United States is a friendly and hospitable country, where many foreigners live and invest. As a nation of immigrants, the United States boasts some of the largest cultural diasporas in the world. The United States is committed to affording foreign investors fair and equitable treatment.