Dubai’s investment plans for markets outside the oil rich emirate are big – big enough to rival some of the mega-deals sought by U.S. private equity giants. Dubai’s overseas investment focus underscores the wave of oil wealth headed for equities markets from New York to London.In a series of interviews with Dubai executives, Reuters reports that the country’s private equity arm is, among other things, targeting as much as $10 billion of investments in Europe and Japan.

Middle Eastern investors picked up the pace of their foreign investment last year, a trend that has only gained in size and speed. Among the factors drawing Mid-East oil money to the U.S. and Europe was a correction in the overheated stock markets in Dubai and Saudi Arabia. The Abu Dhabi Investment Authority plunked down $600 million for a 40 percent stake in Apollo Management’s European fund, which listed last year.

Top executives at both Dubai International Capital and Istithmar, an investment fund that also invests on behalf of Dubai, reveal in the Reuters interviews not only their global investment strategy but also their plans for individual deals such as Barneys and deals focused on media and airlines.
Dubai International Capital even chimed in on its thoughts about HSBC’s valuation, and how it, as a major shareholder in the bank, thinks that subprime worries are overdone. The fund sees an EADS turnaround as well.