Ben Powell, Chief Strategist for Middle East and Asia Pacific at the BlackRock Investment Institute, told Zawya that the world’s largest asset manager was “very open-minded” about co-investment opportunities with SWFs in the region.

“We are driven by opportunity, and as the world’s largest investor, we see an advantage over many of our competitors in terms of reach and scale. So, we are very open-minded about increasing our focus on Asian markets. As many know, the India bull story is very real, and we want to be a part of this, be it through co-investments or joint ventures from the region,” Powell told Zawya on the sidelines of the Abu Dhabi Finance Week (ADFW).

With USD 13.52 trillion in assets under management (AUM), BlackRock has expanded its network in the Gulf region over the past two years with the set-up of its regional headquarters in Riyadh in 2023, following the launch of an investment platform with the help of a USD 5 billion anchor investment from the Kingdom’s Public Investment Fund (PIF). In 2024, the Larry Fink-backed fund manager was granted a commercial license to operate in Abu Dhabi, and since then, the venture has expanded its headcount in Riyadh and Dubai, along with opening offices in Kuwait and Qatar.

“The UAE and Saudi Arabia are at the core of deepening the importance of capital markets in the region, and it is increasingly clear the regulatory efforts are very strong in establishing these places as a regional hub, and maybe in time, as a global hub for capital,” Powell remarked.

BlackRock is already looking to double its investments in the Gulf country by 2030, with current investments in the Kingdom standing at USD 35 billion, as the administration accelerates its socio-economic diversification under the ambitious “Vision 2030” agenda.

BlackRock’s 2026 outlook for the Gulf region calls for a push for investments in domains like artificial intelligence (AI) and infrastructure development. While energy remained an important sector in the Middle East for now, Powell said the AI “mega boom” will continue to gather momentum in the coming years. In 2024, BlackRock partnered with Microsoft and launched a USD 30 billion fund to invest in AI infrastructures such as data centres and energy projects. As per the stakeholders, the partnership will likely mobilise up to USD 100 billion in total investment potential, including debt financing.

According to Powell, there is increased potential in tech firms tapping into capital markets to fund the next phase of AI expansion, with a specialised focus on the build-out, as the latter is going to be necessary to help more individuals and companies drive productivity gains.

“This is where the money is flowing and will build up to be a mainstream asset class over the next few years,” the senior official concluded.

The post BlackRock’s new bait in Asia: Partnerships with Gulf-based wealth funds appeared first on International Finance.

This results in significant surpluses for certain Gulf Cooperation Council economies with reduced fiscal expenditure, distributed to select sovereign wealth funds after the year. As a result, Global SWF predicted in its annual report that the larger, more liquid, and globally oriented savings funds, such as Abu Dhabi’s ADIA, Kuwait’s KIA, and Qatar’s QIA, would experience considerable capital inflows.

Due to their more negligible exposure to conventional bonds and stocks, strategic funds with sizable portfolios of domestic assets, such as Mumtalakat in Bahrain, ICD in Dubai, and Abu Dhabi’s Mubadala and ADQ, do not anticipate receiving significant capital infusions.

“In conclusion, the current economic situation will strengthen regional investors. Middle Eastern sovereign wealth funds are more prepared than ever to shine in this situation. Global SWF’s annual report shows that from USD 21.8 billion in 2021 to USD 51.6 billion in 2022, they invested abroad in Western economies, including the US and Europe,” Global SWF said in its annual report.

2023’s top 10 most active sovereign investors include five investors from the GCC.

SWFs’ Expansion By 2030

The estimated $10.6 trillion in sovereign wealth funds in 2022 is predicted to increase to USD 12.6 trillion by 2025 and USD 17.3 trillion by 2030. According to Global SWF, this will include an increase in AUM and any new funds created due to excessive earnings or a need for capital.

Consolidation and rising contributions will continue to benefit public pension funds, whose values are projected to increase from USD 20.8 trillion to USD 24.6 trillion by 2025 and USD 33.2 trillion by 2030, respectively.

By 2030, there will be at least 500 SOIs, and some of them, if they are successful, might become highly important and help the industry grow, according to Global SWF. Also, the Top 15 will likely still include the top four Middle Eastern funds, with Saudi Arabia’s PIF perhaps rising to the top with USD 2 trillion.

The post Middle Eastern sovereign wealth funds poised for success: Global SWF appeared first on International Finance.