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Tuesday, February 21, 2006

Issues to Consider about the Dubai Ports Deal

DP WorldThere is a tremendous amount of media around the Dubai Port World prospective purchase of P&O. One of the more interesting analyses of the situation is Six Reasons to Take a Deep Breath. by Keith Porter on About.com

Below are some of the key highlights to consider:

These ports have been operated by foreign companies for quite some time. The company that runs them now (P&O) is British (a great American friend). The company buying P&O is part of the United Arab Emirates (also a great American friend).

Among the 9/11 hijackers there were a couple of people born in UAE. But that hardly seems like a rational consideration for analyzing a business deal. The government of UAE is as (or even MORE) opposed to radical Islamic extremism as Americans are. It is a clear and present threat to their very existence. And a terrorist attack on the United States would have huge repercussions on the economy of the UAE.

The company, Dubai Ports World, runs ports all over the world. They have a track record. They have every reason to protect the security of the American ports. If they fail, they will lose business everywhere.

We should not fall into the trap of judging all Arabs by the actions of a small percentage. We wouldn't want them to judge all Americans by the actions of a few, would we? So let's judge this deal on it merits. Can the company fulfill the contract obligations? Are it's other customers satisfied? Has it allowed any security breaches in previous ports? Does it screen all employees? And so on.

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