Rebecca Patterson
Economic concerns about the spillovers from the Iran war have focused on the global flow and availability of critical materials. There is, however, another, much less appreciated war risk for the United States: the supply of dollars from the Gulf, especially to capital-hungry U.S. tech firms and their financial intermediaries.
Gulf Cooperation Council (GCC) economies—including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE)—have dramatically grown and transformed their sovereign wealth fund (SWF) vehicles over the last decade, as part of efforts to diversify away from volatile energy-price cycles. Today, the region hosts some of the world’s largest SWFs, with around a dozen sovereign funds (led by Saudi Arabia and the UAE) managing somewhere between $4–$6 trillion in assets, according to estimates from SWF trackers and the International Monetary Fund.
No comments:
Post a Comment