US rate hikes make Gulf sovereign wealth funds go-to source for capital


Al-Monitor Pro Members


Sebastian Castelier

Business journalist covering Gulf economies


Nov. 23, 2022

Bottom Line:

Cash is no longer cheap. The US Federal Reserve delivered several “jumbo” interest rate hikes in 2022. Major central banks have followed suit and pivoted to ​​quantitative tightening, possibly leading to the “biggest liquidity drain” in history. However, flush with cash from an oil windfall, Gulf sovereign wealth funds — which control more than $3 trillion worth of assets — are back at their 2007-2009 financial crisis playbook: financiers of last resort. The stated goal? Snap up assets across the world to swap part of the “oil rent” for an “assets rent.”


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