Growth in funds, and assets drives SWF's landscape

Much has been written about the resurgence in Sovereign Wealth Fund (SWF) activity over the past two years. New SWFs are being established around the world, existing funds have made highprofile acquisitions, and the value of assets under management continues to hit fresh highs. Less well-explored is the impact of these changes, and how increasing competition is playing out in different ways, particularly in the Middle East.

This brief will recap the recent growth in the SWF landscape, why it has taken place, and how it has shaped changes in the Gulf funds amid an increasingly crowded landscape and a more uncertain geopolitical environment.

In short, despite the flurry of new funds being announced by governments as diverse as Ireland and Pakistan, Gulf SWFs remain at the heart of the industry thanks to their sheer size and ability to pursue large-scale overseas transactions. Yet across the region there is now greater competition and more pressure to improve performance. Newly-created funds are competing with established powerhouses for investment opportunities and talent, and a stronger element of national pride.