BlackRock sees up to $100bn staying in Gulf

BlackRock anticipates that as much as $100 billion could remain in Gulf markets, presenting possibilities in infrastructure and assets open to private capital. This estimate comes from the BlackRock Investment Institute, which does not commit to investing $100 billion, despite the report's interpretation. The institute's chief investment strategist for the Middle East and Asia-Pacific, Ben Powell, notes that the region's financial strength allows for this capital shift, viewing it as a strategic opportunity rather than an immediate necessity.

Investors are also encouraged to diversify away from US assets. The outlook aligns with governments' efforts to attract private investment in sectors like energy, utilities, water, and transport. BlackRock has pinpointed pipelines, data centers, and other large infrastructure projects as potential areas of growth. The report anticipates Gulf Cooperation Council countries will invest around $2.1 trillion by 2030, highlighting resilience against trade, shipping, and energy disruptions as a key priority.

Furthermore, the region shows growing interest in private markets, with sovereign wealth funds allocating 43% of their investments to private capital, up from 35% in 2019. The potential shift is being influenced by conflict-related challenges to Gulf trade and energy routes, with governments in better financial shape and more adaptable export routes better positioned to maintain investment. The article "BlackRock sees up to $100bn staying in Gulf" was originally published on Arabian Post.