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Sheik Abdullah bin Fahid Al Shakrah, Al Hanoo and Emirates Industrial Cities (EIC) Chairman, said:
"Sovereign Wealth Funds are not a new phenomenon, it dates back to 1953, and have become increasingly important due the economic crises resulting from wars, famine, and high petrol prices. The sum of money that GCC countries have made in the past 3 years is estimated at $3,770 trillion, with part of this being invested in purchase operations, the acquisition of shares in companies, trusts, treasury bonds, and regional and international institutions."
Al Shakrah, whose company is currently developing Al Nujoom Islands and EIC projects, added "Many economic experts are trying to assure GCC citizens that the crisis in the gulf will not last long, discouraging them from investing in the Asian market, and attracting them to the Western markets. SWFs have, more than once, supported the foreign markets, and it is now time for them to support and revive the local economy".
Reports related to the investment sector stated that Abu Dhabi Sovereign Wealth Fund is valued at $875bn, while Kuwait's SWF is valued at $215bn and Qatar's at $60bn. GCC SWFs have proved their capabilities, pumping $50bn into companies and establishments affected by the crisis which began in the US in mid 2008.
However, Sovereign Wealth Funds are not exclusive to GCC countries. Norway, for example, has one of the largest SWFs in the world, valued at $322bn.
Singapore, China and Russia also manage such funds, estimated by $100bn. Chile and Venezuela have also recently established their own SWFs, recognising the important role they play in supporting local economies, and creating a new economic outline around the world.
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Posted by Nadeen El Ajou
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