Arabian Gulf sovereign wealth funds pick new plays | The National

Arabian Gulf sovereign wealth funds pick new plays | The National:



"Arabian Gulf sovereign wealth funds (SWFs) may have to increase their transaction volume to generate more returns to make up for the loss of income from lower oil prices and sales, analysts say.



The oil price scenario remains unclear and will continue to impact the investments of Gulf funds, which corner nearly 40 per cent of the world’s estimated US$7.2 trillion sovereign wealth fund assets, based on figures from the US-based Sovereign Wealth Fund Institute (SWFI).



Growth in the energy-exporting Gulf is forecast to slow to 3.4 per cent this year, while the region will post a fiscal deficit of 7.9 per cent as oil prices continue to tumble, according to the IMF. Brent is down about 50 per cent since reaching US$115 a barrel in June last year due to an oil supply glut sparked by the US shale oil boom, weaker demand in Europe and Asia and a stronger dollar."



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