The Dubai Port World contention began in February 2006 and rose to prominence as a national security argument in the United States. At issue was the sale of larboard direction concerns in six major U. S. seaports to a company based in the United Arab Emirates. and whether such a sale would compromise larboard security. The contention pertained to direction contracts of six major United States ports. The buyer was DP World. a state-owned company in the U. A. E. The contracts had already been foreign-owned. by Peninsular and Oriental Steam Navigation Company ( P & A ; O ) . a British house taken over by DPW. completed in March 2006. Although the sale was approved by the executive subdivision of the United States Government. assorted United States political figures argued that the coup d’etat would compromise U. S. port security. After force per unit area. Dubai Port World dropped the trade ( “Under Pressure” Â¶1 ) . The swayer of Dubai. Sheikh Mohammed bin Rashid Al Maktoum is besides the premier curate of the United Arab Emirates.
The determination made by Mohammed to retreat the company was political. DPW is a province owned company. Therefore. one can see that here relationship was straight between place authorities and host authorities. The first factor that played in the reversal of the ports trade was safety of USA from terrorist onslaughts. After the September 11. 2001 onslaughts. foreign investings from the Muslim states were straight or sidelong considered as unsafe because there were some possibilities that through these investings some unsafe stuffs and terrorists could come in. However. DPW operates in many states. and it has a wholly clear repute. Furthermore. after 9/11. United Arabic Emirates had allied with the U. S. in the planetary war on panic. A 2nd critical component could be support of some US companies that had involvement to obtain these strategic concern objects.
From political and economical point of position. there are several factors that can qualify support and protection of domestic companies. First. these ports are strategic for the state. and it is better to be managed by the US Company. Second. more US citizens will be employed. Finally. the most of import factor is security. The state will be safer when these ports are managed by Americans. The safety of the state and support of domestic companies could hold influence on the reversal of the ports trade. The US public concerns did non hold large influence on a concern determination made by a Dubai company. More influence had the political force per unit area. However. public concern besides played its function in this instance. For illustration. people’s sentiment was that foreign provinces. particularly those related to terrorist act in the yesteryear. could non be trusted with strategic American assets. Besides. they thought that foreign states should non hold managerial duties over ports due to divided truenesss and concerns over national independency.
Consequently. all these public sentiments were reflected and expressed by the politicians whose force per unit area constrained Dubai Company to retreat. Thinking that transit takes topographic point through a planetary web of companies is somewhat wrong. Ports are vulnerable to the entry of terrorists or illicit arms because of the big figure of containers that enter U. S. district. Consequently. no foreign authorities should be permitted to have such strategic assets. There are many concern assets that can be owned by foreign companies and investors. However. railwaies. ports. and such sort of strategic concern assets must non be owned by the foreign investors. DP World’s backdown could hold some deductions for planetary concern and investings. First. it could direct a negative message to foreign investors who would retreat their investings and ache the U. S. economic system. Second. there could be some protests and boycotts against American houses in the Muslim states. Finally. United Arabic Emirate states are exporters of oil in the USA. Therefore. they might increase monetary values of oil to show protest against US policy to this port trade.
“Under Pressure. Dubai Company Drops Port Deal. ” Web. November 2. 2010.