The Sovereign Wealth Fund Institute states that Middle Eastern investors now account for a combined over $3 trillion in assets under management.
Governments of the GCC are using their national wealth as a strategic tool of power and status to allocate wealth strategically while reacting to the emerging global megatrends. Because of demographic and social change, shifting global economic power, climate change, technology and urbanisation, both diversification and protection of their assets is high priority.
To further cement the GCC countries and their economies as significant global players, their SWFs are deploying capital and diversifying their portfolios both inside and outside the region. Institutional investors are showing interest in the following emerging strategies, vehicles asset classes:
- Alternative and traditional real estate
There is positive sentiment among UAE with regards to investing in both regional and international real estate. SWFs are moderninsing their methods by looking to alternative vehicles such as; healthcare, storage, malls, student assets, private rented sectors, farms, hospitality and smart buildings
- Venture Capital
With demand for technological products mounting, inflow into the entrepreneurial landscape, venture capital and startups is increasing. Institutional investors are noticing the opportunities in this somewhat under-funded asset class and beginning to act accordingly.
- Co-investment strategies
Some of the most successful global investment transactions in recent years have been co-investment deals. To adapt to changing market regimes, SWFs and institutional investors are now looking to work together to facilitate larger transactions to ensure maximum ROI.
- Equity Markets
With anticipated global economic growth, intuitional investors in this region are looking to invest directly into the alternative platforms and vehicles offered by equity markets, reaching outperformers and generating maximum returns.
At the Middle East Investment Summit 2018, a host of key representatives from GCC SWFs and other institutional and private investors will come together to discuss these themes, together with wider asset allocation trends in today’s turbulent, uncertain and shifting environment.