Gulf SWFs on track for major investments despite war

Gulf sovereign wealth funds are poised for one of their most active dealmaking years in history, even as conflict disrupts businesses and economic development. Forecasts predict these regional funds will invest $136 billion by year-end, marking 2026 as their second-busiest year on record, according to consultancy Global SWF. Abu Dhabi's Mubadala leads the pack with $26.2 billion invested thus far this year.

Nearly half of Gulf sovereign fund investments have gone to the US, indicating American assets continue to be attractive despite discussions surrounding the future of Gulf states' relationship with their primary strategic ally. Gulf funds have been significant contributors to the $110 billion acquisition of Warner Bros. Kuwait's and Qatar's funds may also be required to transfer funds to their government budgets to support state finances, which have been impacted by the decline in oil exports through the Strait of Hormuz, Global SWF reported.

Despite these challenges, Gulf funds are expected to continue expanding rapidly in the years ahead, with these funds anticipated to control $8.8 trillion by 2030, up from $6.1 trillion currently.