Gulf States’ SWFs will be active global investors

Significance

The SWFs of the main Gulf States oil and gas producers are stepping up their investments as the countries maximise hydrocarbon revenues and diversify their economies. The SWFs are now playing an active role in their government’s political and economic strategies, both domestically and internationally.

Impacts

• The PIF will prioritise its vital domestic role over international investment when lower oil prices reduce the overall funds available.
• Gulf SWFs will focus on sectors core to domestic economic development, notably technology, healthcare, food security and infrastructure.
• The Kuwait Investment Authority (KIA) will remain conservative as a result of the emirate’s long-running policymaking stasis.