Assets of Top 8 Middle East SWFs cross $3trln

According to a survey, the eight major Middle Eastern sovereign wealth funds (SWFs) have a combined total asset value of more than $3 trillion as a result of strong oil prices, which are supplying the funds with new resources to raise their allocations to alternative investments.

To assist foreign managers in finding new funding from investors in the region, Preqin, the world leader in alternative assets data, tools, and insights, has released new research titled “Fundraising from the Middle East: A guide to raising capital.”

According to the research, because the funds receive the majority of their funding from state-owned oil and gas industry earnings, the present high oil prices are giving them new money to raise their allocations to alternatives. This creates new potential for managers to assist SWFs in diversifying their portfolios and reducing their reliance on commodities.

The Abu Dhabi Investment Authority (Adia) recently raised the goal allocation bands for infrastructure from 1–5% to 2–7% and private equity from 2–8% to 5–10%.

Family offices in the Middle East have far greater faith in China than the general investor base does when it comes to which emerging economies will offer the best chances over the next 12 months, with 63% selecting this market as offering among the best opportunities.

Adia boosted private equity allocations from 2-8% to 5-10%. High oil prices are bringing in new money to increase investments in alternatives. China is listed as one of the markets offering among the best chances in the next 12 months by 63% of Middle Eastern family offices.

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