The note also stressed that ATIC's purchase of Chartered Semiconductor Manufacturing Co. in Singapore has been approved by shareholders, and has only routine regulatory hurdles to clear. The analyst said ATIC has likely set aside the entire $3.2 billion needed for the completion of that purchase.
Abu Dhabi has a sovereign fund valued at between $700 billion and $800 billion in assets. This accumulated wealth is best on the sale of oil and borrowing against oil reserves.
"If Abu Dhabi does end up helping out Dubai, we believe this would be unlikely to disturb any activities of ATIC. ATIC's mandate is to develop new foundations for long-term growth; we expect that to remain a very high priority for the government," the note concluded.
However, the analysts did not comment on any impact the debt crisis might have on the Dubai Silicon Oasis, a technology park aimed at the microelectronics and semiconductor industries. It is being developed largely on the premise: "Build it and they will come." The estimated total cost of the Dubai Silicon Oasis has been estimated to be as high as $1.3 billion. A zero tax regime and additional incentives are being used to attract companies and skilled workers to the campus.
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