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The assets under management of Gulf sovereign wealth funds have grown by 20%, on average, over the past two years to reach about $4 trillion; Driven by rising oil prices, according to a recent report by data analysis firm S&P Global Market Intelligence.
The report indicated that this represents about 37% of the assets under management of sovereign wealth funds in the world and is almost equivalent to the total of sovereign funds in Asia, Latin America and Sub-Saharan Africa. combined.
Among the top 10 investments in the world belonging to state-owned institutions during 2022, 5 of them were from sovereign investors from the Gulf Cooperation Council countries.
And the UAE acquired 62% of the total distributed capital, through 3 funds: «Adya, Mubadala and Holding (ADQ)».
While 28% of it came from the Kingdom of Saudi Arabia, and 10% from Qatar; According to the data of the report.
The report said that Gulf sovereign wealth funds have benefited to a large extent from the surplus resulting from the recent unexpected gains in energy revenues across the region and have worked to increase their global presence and deepen their entry into global markets through purchases in various sectors.
Although Gulf state funds are likely to continue investing in large developed economies and prominent emerging markets over the next few years, they will also recycle part of petrodollar flows into Middle East and North African economies that need external financing. Egypt and Turkey are examples of this. According to the report.
It is expected that Gulf sovereign wealth funds will become more active and play a larger role in global markets this year because they receive large capital injections derived from high oil revenues. According to an annual industry report issued by the Global Sovereign Fund Corporation in January.
Among the 10 most active sovereign funds in 2022, 5 were from the Gulf region.
The Singapore Sovereign Wealth Fund topped the list of the top 10 state-owned investors, with $40.3 billion invested in 2022, an increase of 17% over 2021. It is followed by the Abu Dhabi Investment Authority (ADIA) and the Saudi Public Investment Fund.
S&P Global Market Intelligence expects the GCC current account surplus to be 9% of the region’s GDP in 2023, and 6% next year.
The research showed that the combined current account balance of the GCC countries in 2022 jumped to the highest level in 10 years at $369 billion, or 16.9% of GDP, and this means that money will continue to flow into funds, providing more investment opportunities locally and abroad. .
The Saudi Public Investment Fund said that its assets under management grew by 13% to about $600 billion in 2022, compared to 2021.
