Introduction  

The investor ecosystem in the Gulf Cooperation Council (GCC) markets is comprised of several large sovereign wealth funds, pension funds, family offices, institutional investors, accredited investors as well as a growing number of asset managers and investment firms. These institutional investors have played an important role in the development of the region’s financial markets and have contributed to the growth and diversification of the GCC economies. 

 

Sovereign Wealth Funds (SWFs) 

The GCC (Gulf Cooperation Council) countries, which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE), are home to some of the world’s largest sovereign wealth funds (SWFs) and invest in a variety of asset classes both domestically and abroad.  

The GCC SWF landscape is diverse and dynamic with each country having its own unique approach and investment strategy.  

GCC SWFs are generally focused on long-term investments and are often used to diversify the countries’ revenue streams and the funds tend to invest in a wide range of assets including but not limited to equities, real estate, infrastructure, and private equity. 

Please find below an overview of Sovereign Wealth Funds in the GCC markets: 

Abu Dhabi Investment Authority (UAE) 

The Abu Dhabi Investment Authority (ADIA) is a sovereign wealth fund owned by the government of the Emirate of Abu Dhabi, which is one of the seven emirates that make up the United Arab Emirates (UAE). ADIA is one of the largest sovereign wealth funds in the world, with estimated assets under management (AUM) of $683 billion as of 2021. 

ADIA was established in 1976 with the aim of investing the surplus revenue from Abu Dhabi’s natural resources. Over the years, the fund has diversified its portfolio to include a wide range of asset classes, including equities, fixed income securities, real estate, infrastructure, and private equity. 

ADIA operates with a long-term focus and a commitment to risk management. The fund’s investments are guided by a set of principles that include diversification, active management, and a focus on sustainability. 

ADIA’s investment strategy is overseen by a team of investment professionals headquarters in Abu Dhabi and who are responsible for identifying and executing investment opportunities. 

ADIA has been recognized for its transparency and governance practices, with the fund regularly publishing its annual report and engaging with stakeholders on its investment activities. The fund is also a signatory to a number of international initiatives, including the United Nations-supported Principles for Responsible Investment and the Santiago Principles, which promote transparency and accountability among sovereign wealth funds. 

Overall, ADIA has played an important role in the economic development of Abu Dhabi and the UAE, and its size and sophistication make it a major player in global financial markets. 

Public Investment Fund (Kingdom of Saudi Arabia) 

The Public Investment Fund (PIF) is a sovereign wealth fund owned by the government of the Kingdom of Saudi Arabia. The fund was established in 1971 with the aim of investing the country’s surplus revenues and diversifying its sources of income. 

The PIF has a diversified investment portfolio, with investments across a range of asset classes, including equities, fixed income, real estate, and infrastructure. The fund has a long-term investment horizon and a focus on generating sustainable financial returns over the long term. 

The PIF is managed by a team of experienced investment professionals headquartered in Riyadh who are responsible for identifying and executing investment opportunities. 

In recent years, the PIF has undergone a significant transformation with a renewed focus on expanding its investment portfolio and supporting the economic diversification of Saudi Arabia. The fund has launched several high-profile initiatives, such as the Vision Fund, which is focused on investing in cutting-edge technologies, and the Red Sea Project, a major tourism development on the Red Sea coast. 

The PIF has made several high-profile investments in recent years, both domestically and internationally. For example, the fund has invested in companies such as Uber, Tesla, and SoftBank Group, as well as a range of real estate and infrastructure projects in Saudi Arabia. 

As of 2021, the PIF’s assets under management (AUM) were estimated to be around $400 billion, making it one of the largest sovereign wealth funds in the world. The fund’s size, expertise, and strategic vision make it an important player in global financial markets and a key contributor to the economic development of Saudi Arabia 

Kuwait Investment Authority (Kuwait) 

The Kuwait Investment Authority (KIA) is a sovereign wealth fund owned by the government of Kuwait. The KIA was established in 1953 as the country’s primary investment arm and is one of the oldest and largest sovereign wealth funds in the world. 

The KIA has a diversified investment portfolio with investments in a wide range of asset classes including public equity, fixed income, real estate, and alternative investments. The fund has a long-term investment horizon and a focus on generating sustainable financial returns over the long term. 

The KIA operates under the guidance of a board of directors, which includes representatives from the Kuwaiti government. The fund is managed by a team of investment professionals located around the world, who are responsible for identifying and executing investment opportunities. 

The KIA has been active in investing overseas for many years, with a particular focus on Europe and the United States. The fund has also invested in several high-profile companies and assets, including Citigroup, BP, and London’s Shard skyscraper. 

In addition to its investment activities, the KIA also plays an important role in supporting the economic development of Kuwait. The fund has made several investments in key sectors such as infrastructure and energy, and it has also launched several initiatives to support entrepreneurship and innovation in the country. 

As of 2021, the exact assets under management (AUM) of the KIA were not publicly disclosed. However, it is widely recognized as one of the largest sovereign wealth funds in the world, with estimates suggesting its AUM may be around $592 billion. The KIA’s size and expertise make it an important player in global financial markets and a key contributor to Kuwait’s economy. 

Mubadala Investment Company (UAE) 

Mubadala Investment Company is a sovereign wealth fund owned by the government of Abu Dhabi. The fund was established in 2002 with the goal of supporting the economic development of Abu Dhabi and diversifying the emirate’s economic interests. 

Mubadala’s investment strategy focuses on a range of sectors including aerospace, energy, healthcare, real estate, and technology. The fund has a diversified portfolio of assets across multiple geographies with investments in both public and private markets. 

Mubadala is actively involved in the management of its investments, often taking significant minority or majority stakes in companies and working closely with management to support growth and value creation. The fund has a long-term investment horizon with a focus on generating sustainable financial returns while also contributing to the economic and social development of Abu Dhabi and the UAE. 

In addition to its investment activities, Mubadala is also involved in a range of strategic initiatives, such as the development of industrial and infrastructure projects in Abu Dhabi, and the promotion of innovation and entrepreneurship through initiatives such as the Hub71 incubator program. 

Mubadala has made several high-profile investments in recent years, both in the UAE and internationally. For example, the fund has invested in companies such as AMD, General Electric and the Carlyle Group. 

According to its 2020 annual report, Mubadala had a total comprehensive income of AED 72.4 billion (approximately USD 19.7 billion) for the year ended December 31, 2020. The fund’s total assets were valued at AED 894 billion (approximately USD 243 billion) as of December 31, 2020. 

Emirates Investment Authority (UAE) 

The Emirates Investment Authority (EIA) is a sovereign wealth fund owned by the government of the United Arab Emirates (UAE). The fund was established in 2007 with the aim of investing the country’s surplus revenues and diversifying its sources of income. 

The EIA has a diversified investment portfolio, with investments across a range of asset classes, including equities, fixed income, real estate, and alternative investments. The fund has a long-term investment horizon and a focus on generating sustainable financial returns over the long term. 

The EIA operates is managed by a team of experienced investment professionals who are responsible for identifying and executing investment opportunities. 

The EIA’s investment strategy is focused on supporting the economic development of the UAE, with a particular focus on key sectors such as infrastructure, energy, and real estate. The fund has made several high-profile investments in recent years, both domestically and internationally, including in companies such as Virgin Galactic and the private equity firm KKR. 

In addition to its investment activities, the EIA also plays an important role in supporting the economic development of the UAE. The fund has launched several initiatives to support entrepreneurship and innovation in the country, and it is also involved in a range of strategic initiatives, such as the development of infrastructure projects and the promotion of sustainable development. 

As of 2021, the exact assets under management (AUM) of the EIA were not publicly disclosed. However, the fund is widely recognized as one of the largest sovereign wealth funds in the region with estimates suggesting its AUM may be around $15 billion. The EIA’s size and expertise make it an important player in global financial markets and a key contributor to the economic development of the UAE. 

Investment Corporation of Dubai (UAE) 

The Investment Corporation of Dubai (ICD) is the principal investment arm of the government of the UAE emirate Dubai and supervises the Emirate’s investment portfolio, which consists of a diverse range of holdings across utilities, transport, financial institutions, industrials and real estate. According to its 2020 annual report, the ICD had a total asset value of AED 658 billion (approximately USD 179 billion) as of December 31, 2020. It is worth noting that this figure represents the total value of the ICD’s assets, which includes both financial investments and other assets such as property and infrastructure. 

State General Reserve Fund (Oman)  

The State General Reserve Fund (SGRF) is a sovereign wealth fund owned by the government of Oman. The fund was established in 1980 with the aim of investing the country’s surplus revenues and diversifying its sources of income. 

The SGRF has a diversified investment portfolio, with investments across a range of asset classes, including equities, fixed income, real estate, and alternative investments. The fund has a long-term investment horizon and a focus on generating sustainable financial returns over the long term.  

The SGRF is managed by a team of experienced investment professionals who are responsible for identifying and executing investment opportunities.  

The SGRF’s investment strategy is focused on supporting the economic development of Oman, with a particular focus on key sectors such as infrastructure, energy, and real estate. The fund has made several high-profile investments in recent years, both domestically and internationally, including in companies such as British Petroleum and Valeo. 

In addition to its investment activities, the SGRF also plays an important role in supporting the economic development of Oman. The fund has launched several initiatives to support entrepreneurship and innovation in the country, and it is also involved in a range of strategic initiatives, such as the development of infrastructure projects and the promotion of sustainable development. 

As of 2021, the exact assets under management (AUM) of the SGRF were not publicly disclosed. However, the fund is widely recognized as one of the largest sovereign wealth funds in the region, with estimates suggesting its AUM may be around $15 billion. The SGRF’s size and expertise make it an important player in global financial markets and a key contributor to the economic development of Oman. 

Sanabil Investments (KSA) 

Sanabil Investments is a sovereign wealth fund owned by the government of Saudi Arabia. The fund was established in 2008 with the aim of diversifying the country’s economy and generating long-term financial returns. 

Sanabil’s investment strategy focuses on a wide range of asset classes, including public equity, fixed income, real estate, and alternative investments. The fund seeks to identify and invest in opportunities that offer attractive returns while also aligning with the strategic priorities of the Saudi Arabian government. 

Sanabil’s investment activities are overseen by a board of directors, which includes representatives from the Ministry of Finance and other government bodies. The fund is managed by a team of experienced investment professionals who have expertise across a range of asset classes and investment strategies.  

In addition to its investment activities, Sanabil is also committed to promoting sustainable development and social responsibility. The fund has implemented a number of initiatives to support economic and social development in Saudi Arabia, including investments in infrastructure, education, and healthcare. 

Sanabil has made a number of high-profile investments since its inception, both domestically and internationally. For example, the fund has invested in companies such as Uber, WeWork, and Tesla, as well as a range of real estate and infrastructure projects in Saudi Arabia. 

Overall, Sanabil is an important player in the global investment landscape, with a focus on generating long-term financial returns while also contributing to the economic and social development of Saudi Arabia. 

 

Pension Funds  

The Gulf Cooperation Council (GCC) markets are home to several large pension funds. The largest pension funds in the GCC region are: 

1. Public Pension Agency (PPA) of Saudi Arabia: The PPA is the largest pension fund in the GCC region, with assets under management (AUM) of over $160 billion as of 2021. The fund is responsible for providing retirement benefits to eligible public sector employees in Saudi Arabia. 

1. General Organization for Social Insurance (GOSI) of Saudi Arabia: GOSI is another large pension fund in Saudi Arabia, with AUM of over $76 billion as of 2021. The fund provides social insurance and retirement benefits to eligible employees in the private sector. 

1. Public Institution for Social Security (PIFSS) of Kuwait: PIFSS is the largest pension fund in Kuwait, with AUM of over $35 billion as of 2021. The fund provides retirement benefits to eligible employees in the public sector. 

1. General Pension and Social Security Authority (GPSSA): The GPSSA is the largest pension fund in the UAE, providing retirement benefits to eligible employees in the public sector. The exact assets under management (AUM) of the GPSSA are not publicly disclosed, but it is widely recognized as one of the largest pension funds in the country. 

1. Abu Dhabi Retirement Pensions and Benefits Fund (ADRPBF): The ADRPBF provides retirement benefits to eligible employees in the government sector in Abu Dhabi. The fund had AUM of over AED 67 billion (approximately $18 billion) as of 2021. 

1. Social Insurance Organization (SIO) of Bahrain: SIO is the largest pension fund in Bahrain, with AUM of over $10 billion as of 2021. The fund provides retirement benefits to eligible employees in the private sector. 

1. General Organization for Pension and Social Security (GOPSS) of Oman: GOPSS is the largest pension fund in Oman, with AUM of over $7 billion as of 2021. The fund provides retirement benefits to eligible employees in the public sector.
   

 

Family Offices  

The GCC region represents a broad spectrum of family offices and whilst information on the breadth and depth of this market is traditionally opaque, a report issued by Mordor Intelligence LLP found that the GCC markets were home to circa 600 family offices with an average AUM of circa $1bn USD per family office. 

It is difficult to ascertain the total wealth of family offices in the GCC markets, as these entities are typically private and do not disclose their financial information publicly. Family offices in the GCC region are typically established by wealthy families or individuals (as single family offices) to manage their personal wealth, and they may have varying levels of assets under management (AUM). 

However, it is estimated that there are several hundred family offices in the GCC region with a total AUM in the hundreds of billions of dollars. These family offices invest in a range of asset classes, including public equities, real estate, private equity, and alternative investments, and have different investment strategies as well as risk profiles. 

Research conducted by Diligencia shows a growing trend for younger generations of established family wealth becoming more interested in diversification of investment strategy with an increasing focus on alternative investments in seed or venture capital in the technology space where older generations may have favoured a more conservative investment strategy. 

 

Institutional Investors  

The institutional investors landscape is a broad spectrum that includes insurance companies, endowments, foundations and other asset managers. 

Insurance companies are an important source of institutional capital in the GCC region with a focus on managing insurance premiums and other assets. These companies invest in a range of asset classes, including equities, fixed income, and real estate and may also participate in alternative investments such as private equity and infrastructure. 

Endowments and foundations are also significant institutional investors in the GCC markets. These entities typically have a social or charitable mandate and may invest in a range of asset classes to support their objectives.  

Other asset managers in the GCC markets include investment banks, asset management firms and hedge funds. These firms provide a range of investment services, including portfolio management, asset allocation, and investment research to both institutional and individual investors. 

Overall, the institutional investor landscape in the GCC markets is diverse and complex, with many different types of investors operating in the market. While pension funds and sovereign wealth funds are the largest institutional investors in the region other investors such as insurance companies, endowments and other asset managers are also significant players in the market. These institutional investors play an important role in the development of the region’s financial markets and contribute to the long-term financial stability of the GCC economies.