Crisis burned petrodollars
According to the UN Conference on Trade and Development (UNCTAD), during 2008, the assets of sovereign funds of Saudi Arabia, Kuwait, Qatar and the Emirate of Abu Dhabi (UAE) decreased from $ 1.165 trillion. to $ 1.115 trillion. Total assets of sovereign wealth funds at the end of 2008 decreased only slightly due to the fact that the governments of the Gulf States have invested in them in addition nearly $ 300 billion, derived from oil exports.
The biggest losses were suffered by the world's largest sovereign fund of Abu Dhabi Investment Authority (ADIA), which totaled $ 183 billion, or 40% of the investment fund's own assets. In late 2007 his assets were estimated at $ 453 billion, thanks to the financial fueling the Government of Abu Dhabi in the amount of $ 57 billion, ADIA completed in 2008, with its $ 329 billion
Kuwaiti state investment fund Kuwait Investment Authority (KIA) has lost $ 94 billion, which also accounts for 40% of the total assets of $ 262 billion in December 2007, the Government of Kuwait has invested in the Kuwait Investment Authority $ 59 billion, resulting in late 2008 fund balance totaled $ 228 billion
Qatari sovereign fund Qatar Investment Authority (QIA) has lost because of the crisis $ 27 billion and completed in 2008 with a balance of $ 66 billion best financial results in the Persian Gulf - in Saudi Saudi Arabian Monetary Agency (SAMA), which has lost only 12% assets, they are estimated at $ 46 billion
Sovereign funds from Gulf Arab countries, which collectively own 45% of worldwide assets of sovereign wealth funds in recent years, committing risky investments, mainly by directing funds to buy strategic stakes in international companies. 2007-2008. they are actively buying up stakes in various companies, and because of the restrictions, as a rule, become holders of minority stakes, no claim to control. Much of the money was invested in U.S. mortgage market, which has become the epicenter of the crisis.
The recent market collapse in real estate and stock markets sharply reduced the assets of sovereign funds, while at the same time, the crisis has created for them new investment opportunities, - noted experts UNCTAD. At the beginning of the crisis, sovereign funds have helped to refinance the major U.S. and European banks. In early 2008, the fund Abu Dhabi Investment Authority for $ 7.5 billion, has acquired 4.9% stake in U.S. bank Citigroup, and the Kuwait Investment Authority for $ 2 billion, has become a minority shareholder of the Swiss Credit Suisse.
Head of the Middle East bloc Economist Intelligence Unit, David Butler calls the data report UNCTAD plausible, but inaccurate, since all the information of the Persian Gulf sovereign funds is confidential. It is possible that some funds even stayed in the black - does not preclude Mr. Butler.
Meanwhile, earlier this year the Foreign Minister of Kuwait Sheikh Mohammed al-Sabah said that because of the crisis, private investors from the Arab countries have lost at least $ 2.5 trillion. According to him, the greatest loss of businessmen from Arab countries have suffered as a result of the depreciation of their investments abroad by 40%, which until the crisis was estimated at $ 2.5 trillion. And another $ 600 billion they lost as a result of falling share prices on stock exchanges in connection with decline in oil prices.
global financial crisis and the resulting losses forced the governments of the Persian Gulf to review its investment strategy. In connection with the loss of funds significantly reduced the volume of investments abroad. Upali amounts of movement of capital between Arab countries. In particular, Egypt is projected to decline investment in the current year twice. Sovereign funds of the Persian Gulf began to invest more in domestic markets. At the same time, the sovereign funds as major institutional investors are still faced with the task of obtaining access to technologies and best practices of leading Western companies. In terms of priority areas for investment of sovereign funds include: automotive, energy, production of medicines, as well as construction.
sovereign wealth funds Gulf formed from the savings generated by oil exports. In total, Saudi Arabia, Kuwait, Qatar and the UAE exports 13 million barrels of oil per day, representing nearly half of OPEC's exports and about 18% of the total production of oil in the world.
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