Deloitte Middle East report: Gulf SWFs lead global growth as assets forecast to reach $18trln by 2030
Dubai, United Arab Emirates – A new Deloitte Middle East report reveals Gulf Sovereign Wealth Funds (SWFs) continue to dominate the global investment landscape, spearheading an industry-wide expansion that has pushed total assets under management globally to $12 trillion by the end of 2024 and forecast to reach $18 trillion by 2030. The Sovereign Wealth Fund (SWF) landscape has witnessed tremendous growth over the past two years, with new SWFs established around the world, high-profile acquisitions by existing firms, and value of assets under management hitting fresh highs.
Gulf funds, which control approximately 40% of global SWF assets and represent six of the ten largest funds worldwide by Assets Under Management (AUM), are reshaping investment strategies amid increasing regional competition and evolving market dynamics. The total number of SWFs globally has roughly tripled since 2000, reaching approximately 160-170 funds, with 13 new entities established between 2020 and 2023.
The Deloitte report, titled 'Growth in funds, and assets drives SWF's landscape,' reveals that Gulf SWFs have maintained an aggressive investment pace, deploying $82 billion in 2023 and an additional $55 billion in the first nine months of 2024. Five major players – the Abu Dhabi Investment Authority (ADIA), Abu Dhabi's Mubadala and Abu Dhabi Developmental Holding Company, Saudi's Public Investment Fund (PIF), and the Qatar Investment Authority (QIA) – continue to dominate activity in the region.
Julie Kassab, Sovereign Wealth Fund Leader at Deloitte Middle East, commented: 'The Gulf region continues to be the epicenter of sovereign wealth fund activity, with its major players driving innovation in investment strategies and operational excellence. We are witnessing these funds not only expand their geographical footprint but also significantly enhance their internal capabilities, setting new standards for the industry in terms of performance and governance.'
Deloitte reveals several significant trends reshaping the regional SWF landscape, as GCC funds look increasingly towards fast-growing countries outside traditional Western markets. Gulf funds are strategically pivoting toward Asia, with many establishing new offices throughout Asia-Pacific and substantially increasing allocations to high-growth economies including China, India, and Southeast Asia.
The sovereign funds have been particularly active in China, investing an estimated $9.5 billion in the year ending September 2024. Both Abu Dhabi Investment Authority (ADIA) and Kuwait Investment Authority (KIA) have been ranked in the top 10 shareholders in Chinese A-Share listed firms. This represents a strategic opportunity as Western investors reduce their exposure, allowing Middle Eastern funds to leverage their strong political and trade relationships with Beijing.
According to the Deloitte report, Africa is also an area of interest, with the mining sector yielding new opportunities. The UAE and Saudi Arabia have shown willingness to invest in high-risk extractives ventures in Africa this year, both directly and through their holdings in multinational mining firms.
This comes alongside the emergence of new investment vehicles, particularly "Royal Private Offices," which now control an estimated $500 billion in assets.
With more entities and more assets now being actively deployed, funds are under increasing pressure to gain a competitive edge, with a stronger focus on internal performance, risk oversight and investment management, to ultimately deliver better returns. Many Gulf SWFs are now adopting a more proactive approach, becoming more open to divest, demanding better reporting from portfolio companies and more willing to exert influence at board level.
This drive for excellence has also sparked fierce competition for human capital, with high demand for national talent. Gulf SWFs now employ an estimated 9,000 professionals across their operations. Gulf funds are offering increasingly attractive packages to senior professionals, particularly those with experience at established funds like Singapore's Temasek or Canada's Maple Eight.
Deloitte also notes a growing trend toward protectionism globally, particularly in developing economies, where governments are reassessing their approach to strategic assets. This shift has led to the creation of new domestically focused funds, often designed to co-invest alongside international partners rather than compete directly with established Middle Eastern players.
Looking ahead, while geopolitical uncertainties and potential commodity price fluctuations may create headwinds, these pressures could drive greater efficiency and innovation in fund management practices.
To download the full report, please click here.
© 2025 Deloitte & Touche (M.E.). All rights reserved.
In this press release references to 'Deloitte' are references to one or more of Deloitte Touche Tohmatsu Limited ('DTTL') a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see deloitte.com/about for a detailed description of the legal structure of DTTL and its member firms. The information contained in this press release is correct at the time of going to press.
About Deloitte & Touche (M.E.) LLP:
Deloitte & Touche (M.E.) LLP ('DME') is the affiliate for the territories of the Middle East and Cyprus of Deloitte NSE LLP ('NSE'), a UK limited liability partnership and member firms of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ('DTTL').
DME is a leading professional services organization established in the Middle East region with uninterrupted presence since 1926. DME's presence in the Middle East region is established through its affiliated independent legal entities, which are licensed to operate and to provide services under the applicable laws and regulations of the relevant country. DME's affiliates and related entities cannot oblige each other and/or DME, and when providing services, each affiliate and related entity engages directly and independently with its own clients and shall only be liable for its own acts or omissions and not those of any other affiliate.
DME provides services throughout 23 offices in 15 countries with more than 7,000 partners, directors and staff.
About Deloitte:
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ('DTTL'), its global network of member firms, and their related entities (collectively, the 'Deloitte organization'). DTTL (also referred to as 'Deloitte Global') and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm sand related entity is liable only for its own acts and omissions, and not those of each other. DTTL, NSE and DME do not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides Audit & Assurance, Tax & Legal and Consulting and related services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte's approximately 457,000 people worldwide make an impact that matters at www.deloitte.com.
Bassel Barakat
External Communications |PR and Media Lead
Deloitte & Touche (M.E.)
bbarakat@deloitte.com | www.deloitte.com
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
5 hours ago
- Zawya
Egypt: Sinai Cement's consolidated profits hike 18% in H1-25
The consolidated net profits of Sinai Cement reached EGP 768.81 million in the first half (H1) of 2025, marking an 18.03% year-on-year (YoY) increase from EGP 651.31 million. Net sales jumped to EGP 4.01 billion as of 30 June 2025 from EGP 2.68 billion in H1-24, according to the financial results. Earnings per share (EPS) stood at EGP 2.08 in H1-25, compared to EGP 4.89 in the same period of 2024. Standalone Results In the first six months (6M) of 2025, the non-consolidated net profits rose to EGP 766.15 million when compared to EGP 658.62 million in H1-24. Meanwhile, the EPS retreated to EGP 2.07 in H1-25 from EGP 4.95 a year earlier. Financials for Q2-25 During the second quarter (Q2) of 2025, the EGX-listed firm achieved EGP 571.50 million in consolidated net profits, an annual hike from EGP 350.19 million. The company generated net sales totaling EGP 2 billion in April-June 2025, versus EGP 1.51 billion in Q2-24. The EPS declined to EGP 1.34 from EGP 2.63. In Q2-25, the company posted higher standalone net profits at EGP 571.90 million, versus EGP 355.84 million in the year-ago period. In 2024, Sinai Cement swung to consolidated net profits at EGP 3.07 billion, versus net losses of EGP 121.42 million in 2023. All Rights Reserved - Mubasher Info © 2005 - 2025 Provided by SyndiGate Media Inc. (
Khaleej Times
7 hours ago
- Khaleej Times
UAE, Saudi SWFs, mutual funds power GCC AuM to $2.2 trillion
The GCC's asset management industry has entered a new phase of expansion, reaching $2.2 trillion in assets under management (AuM) in 2024 — a 9 per cent increase from the previous year — according to a new report by Boston Consulting Group (BCG). The strong momentum is being powered by sovereign wealth funds (SWFs), retail mutual fund growth in Saudi Arabia and the UAE, and a rapid embrace of digital transformation. The region's trajectory is unfolding against a backdrop of global market volatility, fee compression, and evolving investor preferences. Yet experts say the GCC has carved out a unique position, with sovereign wealth funds providing resilience and retail participation offering depth. 'The next decade's leaders will be those who redefine their future, not just endure challenges,' said Lukasz Rey, managing director and partner at BCG and Middle East head of financial institutions. 'With Saudi Arabia and the UAE anchoring regional momentum, the GCC's strategic diversification and SWF dominance signal a future where local asset managers could rival global giants.' Saudi Arabia and the UAE remain the anchors of this growth, together accounting for the bulk of retail mutual fund expansion. Saudi Arabia's Capital Market Authority has introduced reforms to deepen liquidity and strengthen the investment environment, while the UAE has seen robust inflows into funds tied to its rapidly expanding capital markets, including Dubai's IPO boom and Abu Dhabi's ADX growth. Kuwait and Abu Dhabi, meanwhile, remain the dominant players in sovereign wealth, led by the Kuwait Investment Authority and the Abu Dhabi Investment Authority, which are among the largest sovereign funds globally. Collectively, SWFs in the GCC control more than $4 trillion in assets, with increasing allocations to alternative investments and sustainable finance. Analysts say the GCC's AuM growth of 9 per cent in 2024 outpaced the global average of 7 per cent. Much of this increase was driven by market performance rather than fresh inflows, underscoring the region's exposure to global equity swings. Still, experts believe the structural story remains intact. 'Saudi Arabia and the UAE are driving retail mutual fund expansion, while Kuwait and Abu Dhabi lead in sovereign wealth fund dominance,' said Mohammad Khan, managing director and partner at BCG. 'The region is steadily establishing itself as a global financial powerhouse.' One notable trend has been the rise of private assets, traditionally the domain of institutions but now attracting retail investors. Globally, semi-liquid private funds have grown more than fivefold in four years to surpass $300 billion, with GCC investors increasingly participating in these vehicles. In Saudi Arabia, the Public Investment Fund (PIF) has been a catalyst, channeling capital into domestic infrastructure and technology while also investing heavily abroad. Similarly, Mubadala and ADQ in Abu Dhabi have been active in renewable energy, life sciences, and advanced manufacturing — sectors aligned with their respective national diversification visions. Experts argue that the sector's future growth will hinge on its ability to adapt to three structural forces reshaping the industry worldwide: evolving investor demand, consolidation, and digital disruption. On the demand side, active exchange-traded funds (ETFs), model portfolios, and separately managed accounts are emerging as areas of opportunity. Consolidation is already under way, with larger players leveraging scale to expand offerings and cut costs. Smaller firms are increasingly turning to niche strategies and leaner models to stay competitive. Technology is perhaps the most transformative force. Asset managers are investing in artificial intelligence, particularly generative AI, to automate portfolio management, enhance research, and streamline middle- and back-office operations. 'Cost discipline is now a strategic focus, with firms prioritising unique value creation, embracing lean practices, and investing in transformative technologies,' said Nabil Saadallah, managing director and partner at BCG. Industry insiders note that pension funds and sovereign wealth funds are 'quietly reshaping the region's financial architecture' by becoming more active and sophisticated allocators. Saudi pension funds, for example, are diversifying away from traditional fixed income into equities, private markets, and global infrastructure. This not only supports the domestic economy but also integrates the GCC more deeply into global capital flows. The GCC's evolution as an asset management hub also reflects broader economic reforms. Saudi Arabia's Vision 2030 has spurred capital market deepening and foreign investor participation, while the UAE has positioned itself as a global fintech and investment hub through regulatory innovation and attractive free zones such as DIFC and ADGM. The IMF projects GCC non-oil GDP growth at 4.3 per cent in 2025, reinforcing the link between economic diversification and capital market vibrancy. At the same time, the industry must manage challenges. Fee pressure continues to erode margins, forcing managers to rethink value propositions. Global investors are increasingly demanding sustainable and ESG-focused products, an area where GCC managers are beginning to respond, particularly in renewable energy-linked funds. Furthermore, volatility in global markets — from US rate uncertainty to China's slowing growth — could affect inflows and performance. Despite these risks, the outlook remains broadly positive. According to Preqin, assets under management in private markets worldwide are expected to reach $24 trillion by 2028, and the GCC is positioning itself to capture a meaningful share of that growth. Regional SWFs are already among the most active investors in private equity, venture capital, and infrastructure, while retail investors are steadily being drawn into professionally managed products. In a region once heavily reliant on hydrocarbons, the rise of a $2.2 trillion asset management sector signals both resilience and reinvention. As BCG's Rey put it, 'The GCC has the ingredients — sovereign fund strength, retail momentum, and diversification strategies — to not just withstand global market volatility, but to emerge as a serious competitor to the world's leading asset managers in the decade ahead.'
Zawya
7 hours ago
- Zawya
Kalaam Iraq Transit: Transforming GCC-Europe Connectivity with unmatched Performance & Resilience
MANAMA, Bahrain /PRNewswire/ -- Kalaam Telecom Group proudly celebrates the successful one-year anniversary of the Kalaam Iraq Transit route. This pioneering initiative, launched in strategic partnership with the Iraqi Informatics & Telecommunication Public Company (ITPC) has emerged as a critical terrestrial alternative for data traffic between the Gulf Cooperation Council (GCC) and Europe. Over the past year, Kalaam Iraq Transit has demonstrated exceptional performance, delivering large capacities to its mission critical customers to benefit from low -latency, enhanced resiliency, and superior security. The route supports multi-terabits capacity and effectively mitigates geopolitical risks and capacity constraints, providing businesses to benefit from dependable and diverse connectivity. Today, with the lowest round-trip delay (RTD) between GCC and Europe, the route is trusted by mission-critical customers, including banks, ministries of foreign affairs, government agencies, and live sporting event platforms, where performance, uptime, and security are non-negotiable. Additionally, Kalaam Telecom Group subsidiary Zajil Telecom's landing license in Kuwait, in collaboration with CITRA, allows the route to bypass common chokepoints in red sea, a major corridor for east to west traffic, ensuring a completely diverse & redundant route with consistent performance and preventing data loss. Nezar Mohammad Al Saie, Chairman of Kalaam Telecom Group, stated, "The launch of Kalaam Iraq Transit has reinforced our position as a digital infrastructure leader. We are proud to have supported global carriers, hyperscalers, and mission-critical organizations with dependable and strategic connectivity during a challenging geopolitical year. This milestone reflects our commitment to building resilient routes that empower customers to operate without disruption." Kalaam remains committed to robust and diverse connectivity options further enhanced by its 100% terrestrial KNOT cable system and participation in the EIG consortium submarine cable system. About Kalaam Telecom: Kalaam Telecom Group (Kalaam) is a trusted digital solutions provider with over 30 years of expertise, serving SMEs, Enterprises, and Telecom Carriers regionally and globally. Headquartered in Bahrain with offices in Saudi Arabia, Kuwait, UAE, Jordan, Egypt and the UK, Kalaam offers advanced digital solutions like Connectivity, Cloud, Cybersecurity, Managed Networks, Voice & Collaboration, ICT & Data Center for various verticals. Kalaam owns the KNOT terrestrial cable system and is a consortium member of the Europe-India Gateway (EIG) undersea cable. Its unique "Kalaam Iraq Transit" terrestrial route ensures low latency, high security, and resilience, making it a reliable partner for regional and international connectivity.
