Gulf Sovereign Wealth Funds: Major Actors in World Finance
The sovereign wealth funds of Gulf countries have become key players in world finance. By investing colossal sums in strategic sectors, they contribute both to local development and the growing influence of the Gulf monarchies in the global economy and international politics. In the near future, they will have to grapple with two challenges: that of human capital, and that of their geopolitical position between the Global North and Global South.
The main purpose of a sovereign wealth fund is to build up long-term national savings for future generations by diversifying its investments across sectors and geographies. In line with this approach, Gulf countries have for many years fed their sovereign wealth funds with huge oil revenues, particularly when crude oil prices were at their highest, reaching a historic record of $143 per barrel in 2008.
During the financial crisis of 2007-2008, their intervention was decisive in rescuing the financial system, with the injection of tens of billions of dollars into the capital of financial institutions. Since then, they have continued to gain credibility, sophistication, and technical expertise. They are now at the forefront of investment in artificial intelligence (AI) and energy transition. New directions in their investment strategies could have major repercussions on the global financial ecosystem.
Today, Gulf sovereign wealth funds have become true titans of finance. Their growing influence reflects their colossal financial weight and a rise to power that has been as rapid as it has been structured. Ten years ago, they collectively controlled approximately $2 trillion in assets under management (AUM). By 2025, this amount had more than doubled to over $5.35 trillion, representing nearly 40% of the world's sovereign wealth fund AUM, estimated at $13 trillion. The Persian Gulf has thus become the global center of gravity for sovereign wealth funds. [...]
François-Aïssa Touazi is senior managing director at Ardian, Europe's leading private equity firm, where he is responsible for investor relations and public affairs. He is also vice-president of the France-Gulf Countries Council at Medef International and chairs the task force on sovereign wealth funds.
This article is only available in French and published in Politique étrangère, Vol. 90, No. 4, 2025.
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