Latest news with #GlobalSovereignAssetManagementStudy
See - Sada Elbalad
24-07-2025
- Business
- See - Sada Elbalad
Central Banks Show No Sign of Slowing Their Rush to Gold as Geopolitical Tensions Intensify Amid Trump's Policies
Waleed Farouk Central banks around the world show no indication of slowing down their push into gold, as the political and economic turmoil resulting from former U.S. President Donald Trump's foreign policies continues to fuel demand for the precious metal. According to a research report by global investment firm Invesco, central banks are steadily expanding their gold holdings, with nearly 50% of monetary authorities planning to increase their gold allocations over the next three years. 'Amid rising uncertainty and limited currency diversification options, gold has re-emerged as a fundamental pillar for enhancing reserve resilience,' said Rod Ringrow, Head of Official Institutions at Invesco. 'Gold is valued not just for its traditional role as a safe haven, but also for its political neutrality — a critical factor as geopolitical risks rise,' he added. Trump's presidency triggered widespread volatility in financial markets. His announcement of 'Liberation Day' tariffs on April 2 had a sharp negative impact on investor sentiment. U.S. stock markets recorded their worst week since the COVID-19 crash, while Asian stocks suffered their steepest declines in decades. Commenting on current market risks, JPMorgan CEO Jamie Dimon stated during the bank's quarterly earnings release last week: 'Significant risks remain — including tariffs and trade uncertainty, worsening geopolitical conditions, high fiscal deficits, and inflated asset prices.' Invesco's 13th edition of its Global Sovereign Asset Management Study (49 pages) quoted a central banker from Latin America as saying: 'Gold is a diversifier, but it is also a form of protection — a backstop when all else fails.' The study's findings align with a June survey conducted by the World Gold Council, which polled 72 central banks. It showed a record number of respondents expecting to increase their gold holdings over the next 12 months, with 43% indicating plans to boost reserves — up from 29% the previous year. Shaokai Fan, Head of Central Banks at the World Gold Council, said: 'Western countries have stopped selling gold, while emerging markets are accelerating purchases, aiming to catch up and build larger reserves.' Speaking specifically about 2024, Fan described central bank demand for gold as 'insatiable,' noting that purchases had exceeded 1,000 metric tons for the third year in a row. Central banks have become one of the primary forces driving the ongoing gold bull market, which has seen prices double since late 2022 — a trend that accelerated following Russia's invasion of Ukraine. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters Arts & Culture "Jurassic World Rebirth" Gets Streaming Date News China Launches Largest Ever Aircraft Carrier Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Arts & Culture South Korean Actress Kang Seo-ha Dies at 31 after Cancer Battle Business Egyptian Pound Undervalued by 30%, Says Goldman Sachs Sports Get to Know 2025 WWE Evolution Results News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks
Arabian Post
19-07-2025
- Business
- Arabian Post
Middle East Funds Chart Stronger Course into Chinese Markets
Arabian Post Staff -Dubai A significant majority of sovereign wealth funds from the Middle East are poised to increase their investments in Chinese assets over the coming five years, according to the latest findings from Invesco's Global Sovereign Asset Management Study. This shift places China at the forefront of strategic allocation decisions, reflecting growing confidence in its innovation-led sectors. The study, conducted between January and March and covering funds and central banks managing a combined US$27 trillion, reveals that around 60% of Middle Eastern sovereign wealth funds are planning to boost exposure to China. This places the region only behind Asia‑Pacific and Africa, where 88% and 80% of funds respectively intend to raise allocations. North American counterparts also show strong interest, with approximately 73% signalling intent to increase investment in China. ADVERTISEMENT Funds across regions cited strong returns—identified by 71% of respondents—as a key motivator, alongside diversification goals cited by 63% and improved market access for foreigners mentioned by 45%. Chinese innovation sectors, including digital technology, software, advanced manufacturing, automation, and clean energy, are particularly attractive, with 89% indicating interest in digital tech and software, and 70% each for manufacturing and green energy. Participants in the study included 141 senior investment professionals—chief investment officers, asset-class heads and portfolio strategists—drawn from 83 sovereign wealth funds and 58 central banks globally. The high participation rate lends weight to the findings: China is now ranked as a high or moderate priority for 59% of funds, a notable jump from the previous year. Despite geopolitical tensions between Washington and Beijing, sovereign funds appear more focused on structural opportunities. North American allocations towards China are framed as strategic, long-term bets in innovation rather than reactive moves to policy friction. As one Invesco executive described, investors appear driven by fear of missing out on China's strides in semiconductors, AI, EVs and renewable energy—'a strategic urgency they once directed toward Silicon Valley'. A regional lens reveals the Middle Eastern shift as part of a larger recalibration. Sovereign funds in the Gulf and from oil-rich neighbours are increasingly turning to China not just for commodity trades but for diversified returns and access to high-growth sectors. One Middle Eastern fund commented that the credit spectrum in fixed income markets currently offers more attractive risk-adjusted returns than public equities, underlining a broader repositioning. Globally, sovereign investors are embracing active management, allocating more to fixed income and private credit as markets normalise post ultra-low interest rate era. Thirty‑nine per cent of funds plan to increase fixed income exposure, underscoring a pivot towards liquidity management and resilience. Private credit usage has expanded sharply, from 30% to 44% in direct or co-investments, reflecting growing appetite for yield and portfolio diversification. Central banks are also reshaping strategy, with 64% planning to grow reserve holdings and 53% aiming to diversify further within two years. Gold remains a popular hedge: almost half intend to expand allocations over the next three years. The dominance of the US dollar persists, with 78% expecting no credible alternative supply within the next two decades. A modest entrant in the digital asset space, sovereign wealth funds are gradually increasing exposure to digital currencies. Direct allocations rose to 11% from 7% in 2022, most pronounced in the Middle East, Asia‑Pacific and North America. Stablecoins, viewed as more accessible than traditional crypto, are gaining attention among emerging market funds. China remains a focal point for global sovereign investors seeking exposure to growth-critical sectors and structural diversification. The convergence of strong returns, market access improvements, and sectoral opportunities is driving Middle Eastern and other funds to recalibrate their portfolios. China has transitioned from an optional allocation into a central pillar of future-focused asset strategies, marking a calculated investment pivot amid an evolving global landscape.
