Dubai Ports World controversy
national security controversy in the United States
The Dubai Ports World controversy began in February 2006 and rose to prominence as a national security debate in the United States. At issue was the sale of port management businesses in six major U.S. seaports to a company based in the United Arab Emirates (UAE), and whether such a sale would compromise port security.
The controversy pertained to management contracts of six major United States ports. The purchaser was DP World (DPW), a state-owned company in the UAE. The contracts had already been foreign-owned, by P&O, a British firm taken over by DPW (completed in March 2006). Although the sale was approved by the executive branch of the United States Government, various United States political figures argued that the takeover would compromise U.S. port security.
U.S. President George W. Bush argued vigorously for the approval of the deal, claiming that the delay sends the wrong message to U.S. allies. Legislation was introduced to the United States Congress to delay the sale. On March 8, 2006, the United States House Committee on Appropriations voted 62–2 to block the deal. Despite President Bush's previous intention to veto the legislation, DP World announced on March 9, 2006 that they will drop the deal and transfer operations to a U.S. entity to defuse the situation. Dubai Ports World eventually sold P&O's American operations to American International Group's asset management division, Global Investment Group, for an undisclosed sum.
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