A report stated that due to worries about geopolitical tensions, Middle Eastern sovereign investors are prioritizing India and other emerging countries, following the lead of their international counterparts.
The South Asian nation is viewed as the most alluring location for investments among developing economies by 88% of global wealth funds, including 100% of those in the Middle East, according to a recent survey by US-based investment management company Invesco.
The Public Investment Fund of Saudi Arabia has previously shown interest in developing countries such as India. Investment Minister Khalid Al-Falih of the Kingdom stated in September 2023 that there was a chance to open an office for a sovereign wealth fund in the Asian nation and to use venture capital funds to invest in Indian start-ups that serve the Saudi markets.
Head of Invesco’s Middle East and Africa Josette Rizk commented on the company’s study, saying: “Sovereign investors are recalibrating their portfolios, pivoting toward equities, private credit, and hedge funds amid an unpredictable macro environment.”
“Emerging markets are gaining momentum, with funds adopting a selective approach,” the speaker continued.
As to the research, wealth funds intend to realign their portfolios to align with the current macroenvironment. Specifically, in the Middle East, half and half of the funds intend to augment their allocations to infrastructure in the upcoming year.
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