Gulf Sovereign Wealth Funds Accelerate Dealmaking Despite Regional Tensions and Oil Disruptions
Gulf sovereign wealth funds deployed nearly $26 billion in investments during March-May, marking their highest spending rate in five years despite ongoing Iran conflict and Strait of Hormuz closure. The five largest Gulf funds—including Saudi Arabia's PIF and UAE's ADIA—shifted capital toward emerging markets, with PIF's $6 billion Moonton Technology investment exemplifying this trend. The investment surge suggests Gulf states are maintaining economic momentum and diversifying portfolios despite geopolitical and energy sector headwinds.
Gulf sovereign wealth funds have significantly increased their dealmaking activity over the past three months, collectively deploying approximately $26 billion—a higher deployment rate than any comparable period in the previous five years. This acceleration occurred despite substantial regional challenges, including the Iran war and the closure of the Strait of Hormuz, which has impacted oil revenues. The five largest spenders—Abu Dhabi Investment Authority, Mubadala, L'IMAD from the UAE; Saudi Arabia's Public Investment Fund; and Qatar Investment Authority—demonstrated varying strategies, with PIF emerging as the most active fund. Notably, capital flows shifted toward emerging markets, exemplified by PIF's $6 billion investment in Chinese game developer Moonton Technology, outpacing developed market investments. However, PIF also made strategic pullbacks, including its decision to cease funding LIV Golf, while QIA was the only major fund to slow its investment pace.
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- SemaforCenter
Gulf funds step up dealmaking despite Iran war
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