DUBAI: Global ports operator DP World believes international trade tensions such as those between the United States and China will make 2019 challenging but not unmanageable, its chairman said.
The Dubai government-controlled ports operator cautioned in August about geopolitical risks and changes in trade policies as first-half profit fell 2.1 per cent.
DP World Chairman Sultan Ahmed bin Sulayem said he believed the psychological impact of trade tensions involving the United States were starting to translate into reality.
Financial institutions were becoming increasingly cautious and taking measures such as tightening lending in reaction to trade tensions, he said in an interview at the DP World Tour Championship golf tournament in Dubai.
That is likely to negatively impact growth in emerging markets, he said.
Trade tensions were evident in Papua New Guinea on Sunday when Asia-Pacific leaders failed to agree on a communique at a summit for the first time in their history as deep divisions between the United States and China over trade and investment stymied cooperation.
DP World, one of the world’s largest port operators, was taking measures to reduce costs, and is addressing how it will manage a challenging 2019, said bin Sulayem.
“We are finding ways to make sure that we do good in 2019,” he said. He declined to comment when asked if the company would report a higher profit this year. — Reuters
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