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Sovereign wealth funds in the Gulf - an assessment

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  • Bahgat, Gawdat

Abstract

Since the early 2000s the number and size of sovereign wealth funds (SWF) have grown substantially. A large proportion of these government-owned and government-run funds were created by oil producing countries in the Gulf region and elsewhere. These funds have made some high-profile investments in the United States and Europe. Despite their crucial role in helping to overcome global economic recession, some policy-makers are concerned about the surge of SWF's role in the international economic system. This study examines the rise of SWF from the Gulf region and the role they play in their home countries and in the recipient markets. The paper analyzes the argument for and against these funds. I argue that SWF investments have been largely driven by economic considerations and have served the interests of both holding and receiving economies. Furthermore, SWFs have contributed to a growing interdependence between the two sides. In short, facilitating foreign investments, including those from SWFs, is a win-win strategy.

Suggested Citation

  • Bahgat, Gawdat, 2011. "Sovereign wealth funds in the Gulf - an assessment," LSE Research Online Documents on Economics 55015, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:55015
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    File URL: http://eprints.lse.ac.uk/55015/
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    References listed on IDEAS

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    1. William L. Megginson & Bernardo Bortolotti & Veljko Fotak & William Miracky, 2009. "Sovereign Wealth Fund Investment Patterns and Performance," Working Papers 2009.22, Fondazione Eni Enrico Mattei.
    2. Bortolotti, Bernardo & Fotak, Veljko & Megginson, William & Miracky, William, 2009. "Sovereign Wealth Fund Investment Patterns and Performance," Institutions and Markets Papers 50407, Fondazione Eni Enrico Mattei (FEEM).
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    6. Mr. Christian B. Mulder & Mr. Amadou N Sy & Miss Yinqiu Lu & Mr. Udaibir S Das, 2009. "Setting Up a Sovereign Wealth Fund: Some Policy and Operational Considerations," IMF Working Papers 2009/179, International Monetary Fund.
    7. Reisen, Helmut, 2008. "How to spend it: Commodity and non-commodity sovereign wealth funds," Research Notes 28, Deutsche Bank Research.
    8. Helmut Reisen, 2008. "How to Spend It: Sovereign Wealth Funds and the Wealth of Nations," OECD Development Centre Policy Insights 59, OECD Publishing.
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    Cited by:

    1. İlker YAMAN & Ahmet Burçin YERELİ, 2019. "The Political Aspect of Sovereign Wealth Funds," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(41).

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