THE ROLE OF SOVEREIGN WEALTH FUNDS IN SHAPING INTERNATIONAL INVESTMENT FLOWS: A CASE STUDY OF THE GULF COOPERATION COUNCIL (GCC) COUNTRIES

Authors

  • Sodiqov Jasurbek Elmurod o’g’li Student, Scientific supervisor: Malikov Numonjon Kamalovich Lecturer at the University of World Economy and Diplomacy

Abstract

Sovereign Wealth Funds (SWFs) in the Gulf Cooperation Council (GCC) countries play a crucial role in global finance by channeling state-owned capital into strategic investments that support economic diversification and stability. Key SWFs like the Abu Dhabi Investment Authority, Kuwait Investment Authority, and Saudi Arabia’s Public Investment Fund invest heavily in sectors such as technology, real estate, and renewable energy. These investments drive job creation and market development, but challenges remain, including transparency issues, geopolitical risks, and reliance on oil revenues. To ensure sustainable growth, improving governance, broadening funding sources, and balancing local and global investments are essential.   

References

International Monetary Fund (2023) Gulf Cooperation Council: Economic Prospects and Policy Challenges for the GCC Countries. IMF Staff Country Reports, 2023(413). Available at: https://www.elibrary.imf.org

International Monetary Fund (2024) Gulf Cooperation Council: Pursuing Visions Amid Geopolitical Turbulence. Policy Papers, 2024(066). Available at: https://www.elibrary.imf.org

Sovereign Wealth Fund Institute (2023) Largest Sovereign Wealth Funds Worldwide by Assets Under Management. Available at: https://www.swfinstitute.org

Sovereign Wealth Fund Institute (2025) Largest And Global Sovereign Wealth Fund Institute. Available at: https://www.swfinstitute.org

World Bank (2024) Remittance Flows to MENA Region. Available at: https://www.worldbank.org

World Bank (2024) GCC Economic Update: Resilience Amid Global Challenges. Available at: https://www.worldbank.org/en/region/mena/publication/gulf-economic-update

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Published

2025-04-14