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        March 12, 2008

　

(CNN Student News) -- March 12, 2008 Boom Times - Discover where some of the United Arab Emirates' oil profits are being invested. Is this Legit? LORINC: Is This Legit? The United Arab Emirates is currently made up of 15 Middle Eastern countries. False! The UAE is actually one country whose capital is Abu Dhabi. It was formed when six states got together in 1971. Boom Times AZUZ: And the United Arab Emirates is actually one of the richest countries in the world, and a huge reason for that is oil. If you've been watching our show the past few days, you know that crude prices are shooting sky high right now, which means consumers are paying more and the countries producing it are earning more. Wilf Dinnick looks at where some of those profits are going. (BEGIN VIDEO CLIP) WILF DINNICK, CNN REPORTER: Boom times have never been like this. Here in Abu Dhabi, the world's fourth-largest oil producer, revenues are spilling over. MANOUCHEHR TAKIN, SENIOR PETROLEUM ANALYST, CENTRE FOR GLOBAL ENERGY STUDIES: Countries like the UAE, they have a small population. They don1t have enough room nearly to absorb. Qatar and so on. So, obviously for them outside investment is the best. DINNICK: At $100 a barrel, it is estimated Gulf countries have close to $200 billion a year to invest. And they are investing. Abu Dhabi owns almost 5% of America1s largest bank and a chunk of America1s largest homebuilders, the Toll Brothers. Neighboring Dubai is vying for twenty percent of the Nasdaq exchange. And no signs oil prices are coming down. One reason for all this is the falling U.S. dollar. Oil, that's traded in U.S. dollars, is now attractive to more foreign investors. That's because they can buy more of it with their stronger currencies. That's creating more demand and pushing up prices. But many of these Gulf investment funds keep a very low profile, rarely talking to the media. The U.S. Congress is starting to ask questions. ROBERT MCKINNON, MANAGING DIRECTOR, EQUITY RESEARCH, AL MAL CAPITAL: A lot of people get very concerned whether this is just a profit-making investment or if there is a political agenda behind it. So, rather than say the wrong thing, they would rather just keep a low profile. DINNICK: But that may be hard, with the Gulf countries looking to spend hundreds of billion of dollars, and record oil prices that could keep climbing. Wilf Dinnick, CNN, Dubai. (END VIDEO CLIP)