Executive SummaryWhat is this report about? Sovereign Wealth Funds (SWFs) are state owned investment vehicles for managing national wealth. Gulf SWFs rose in prominence in the global stage following the dramatic rise of oil prices since 2003 spurred by globalization and increased trade with the onset of World Trade Organization. GCC economies, which are endowed with finite pool of hydrocarbon resources accumulated ample foreign reserves and realized the need to convert them into diversified assets. The rationale behind the initiation of SWFs in the region was that these diversified assets could provide with them a steady and stable source of income, which could last for generations. In this report, we have documented the investment process, asset allocation preferences, risk management practices and estimated the trajectory of SWF assets in the near future. Who will benefit and why? The report will benefit anyone who is interested in understanding the investment process and asset allocation preferences of gulf SWFs especially, government institutions, institutional investors, investment bankers, fund managers, consultants and private equity funds. This report would help these entities to enhance their understanding about the gulf SWFs. How exhaustive is this report? We have traced the evolution of the gulf SWFs and enumerated their dynamic roles that they play in the regional economy. Asset allocation preferences, investment trends, risk management practices and investments in domestic market have been analyzed. We have also discussed the impact of lower oil revenues on their asset size and estimated the future trajectory for gulf SWFs.
Table of Content
- li>Executive Summary
- Sovereign Wealth Funds
- Investment Strategies
- SWF Asset Size Estimation
- Key Trends
- Growth Drivers
- Issues & Challenges
- Policy Recommendation to tap Institutional Investors
Key Questions Addressed in this report
- How would the lower oil revenues affect the SWF assets?
- What are the key trends pertaining to asset allocation, risk management & in-house management among gulf SWFs
- How much have they invested in domestic markets?
- What investment strategies have been adopted by gulf SWFs?
- What are the multiple roles played by GCC SWFs?