GCC FDI net inflows and State-Owned Investor balances create a solid financial buffer to uphold any financial challenges or oil price decline and fund ambitious growth plans
FDI Ambitions:
- The UAE stands out as the only GCC nation consistently growing in FDI inflows over the past 5 years until 2022.
- In 2021, KSA attracted the highest FDI of $19bl, driven by Aramco’s privatization through IPO ($12.4bl). For a total of $500bl FDI is aimed to secure under the Saudi 2030 Vision.
State-Owned Investors Dynamics:
- GCC takes for 11% of the Global AUM of SOI.
- SOI balance peaked at a historic $5.4trln in 2023 (UAE $2.2trln, KSA $1.6trln, and Kuwait $984bl).
- Total foreign reserves have stabilized at an average of $700bl since 2016, with KSA accounting for 65%.
- PIF emerges as a highly engaged SWF, playing a pivotal role in Saudi Vision 2030 and overall transformation.
- Despite historical challenges, 70% of the 138 GCC companies going public from 2018 to 2023 choose Tadawul, reflecting a competitive bid for influence in the region.
In this era of transformation and competition, the GCC countries, particularly Saudi Arabia, the UAE, and Qatar engage in a strategic bid for regional influence. The evolving dynamics show a promising future, where economic ambitions meet financial resilience, positioning the GCC as an emerging key player in the international economic landscape.
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Sources: International Monetary Fund, SWF 2023 report by Global SWF
