Oil-rich Gulf monarchies are channeling more international deals via state-backed firms instead of the region’s sovereign wealth funds, as they seek to diversify their economies and win more global heft.
Alongside billions of dollars of sovereign investments, state-run companies in the United Arab Emirates and Saudi Arabia — many of which are also backed by the wealth funds — have been involved in at least $50 billion in deals this year across sectors from telecommunications to renewables and gaming.
Although the global investment spree by sovereign funds is likely to continue, more of the strategic deals are expected to be done via the region’s largest corporates such as Abu Dhabi’s clean-energy producer Masdar, Emirates Telecommunications Group and Saudi Arabian Mining Co.
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