CAPE TOWN — The Dubai consortium that bought the Victoria & Alfred Waterfront says it disagrees with the high political risk assigned to SA by international rating agencies, and is looking at making substantial investments across a range of economic sectors.

Dubai World Company Nakheel Hotels & Resorts CEO James Wilson, who spearheaded the R7bn acquisition, said: “We believe quite strongly that the risk that international rating agencies give SA is too high. There is a crime issue, but employment will solve that.”

His views differed markedly from those of the new US ambassador to SA, Eric Bost, who warned at the weekend that the 2010 Fifa World Cup could falter if crime remained unchecked, as few people would want to come to SA for the event.

International rating agencies highlight concerns of foreign investors over presidential succession and whether President Thabo Mbeki’s successor will maintain sound macroeconomic policies.

Wilson said in an interview during a conference on Africa and the Middle East that Dubai World was keen to invest in South African game reserves, golf courses, financial services and construction and other businesses with prime assets such as shopping centres. It had its eye on Sandton, Pretoria and KwaZulu-Natal, as well as other parts of the country.

Dubai World has committed an additional $1bn for further development of the V&A Waterfront.

“The investment returns here are what attract us. The costs of entry are lower here than in the rest of the world. With the price of entry being low, obviously the investment return is higher for us,” said Wilson.

With the 2010 Soccer World Cup, SA would be hosting the world’s biggest marketing event. Wilson believed SA’s foreign tourist arrivals were low in international terms although it had some of the best tourism assets in the world, such as roads, golf courses, coastline, mountains and winelands.

Wilson said SA had a sophisticated economy with a proper legal system and a good banking system similar to those in the US and UK.

The country had huge, largely untapped investment potential, he said.