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The Magnificent seven Gulf Sovereign Wealth Funds are going on the offensive. Expect more M&A activities from this part of the world
As already witnessed after the 2008 financial crisis, the Gulf Cooperation Council (GCC) Sovereign Wealth Funds (SWFs) became more assertive during times of financial and economic difficulties. Their role has become more critical in stabilizing the international financial system during and after the recent financial crisis. Gulf SWF invested over 50 billion dollars to support banks and financial institutions in 2008, reducing the impact of the crisis, while propping up the US dollar value. A few of the companies the Gulf countries invested in during the crisis were global lenders Citigroup, Barclay, and sports assets Manchester City football team.
These SWF were able to perform such investments because of the excess liquidity they accumulated via oil and natural gas exports. The GCC account for nearly 40 percent of global oil reserves and 24 percent of natural gas reserves. More specifically, the “Magnificent Seven” have combined assets of $3,2 trillion amounting to approximately 40% of SWFs global assets. These seven SWF are the Abu Dhabi Investment Authority ($829 billion), the Kuwait Investment Authority ($769 billion), the Saudi Public Investment Fund ($620 billion), the Qatar Investment Authority ($445 billion), the…
