Gulf sovereign investors unshaken by Middle East wars but opt for global markets
Gulf Cooperation Council investors accounted for 40% of deals made by sovereign investors globally in 2023 and 2024.
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DUBAI — During the first nine months of this year, sovereign wealth funds from Gulf Cooperation Council countries, which are mainly funded by fossil fuel exports, have deployed $55 billion across 126 deals, an industry report published this month by data platform Global SWF found. The investment spree was led almost entirely by Emirati sovereign wealth fund Abu Dhabi Investment Authority, ADQ and Mubadala, Saudi Arabia's Public Investment Fund and the Qatar Investment Authority.
Gulf sovereign wealth funds are “on track” to deploy a total of about $80 billion this year, similar to the amount these entities invested in 2022 and 2023, according to Global SWF. However, this figure predominantly represents investments in international markets and does not take into account domestic developments. For instance, Saudi Arabia's PIF is increasingly focusing on domestic priorities to fast-track Vision 2030, the transformation plan spearheaded by Saudi Crown Prince Mohammed bin Salman. PIF’s allocation to domestic investments surged to 76% of assets under management in 2023, up from 67% a year earlier.
The Gulf region has emerged as a prominent force in global dealmaking, referring to investments made by sovereign entities. In 2023 and 2024, GCC sovereign investors accounted for 40% of deals made by sovereign investors globally, roughly doubling their contribution to global dealmaking since 2019, when it stood at 22%.
