Foreign investments by Middle East sovereigns to increase in 2012
Over half of total sovereign investment funding, estimated at $4.8 trillion worldwide, was driven by oil and gas revenues, most of which was generated by the Middle Eastern region
The global landscape for Sovereign Financial Institutions (SFI) connected with their structure, safeguarding their sovereign tax exemptions and their compliance requirements have remained key issues for the state-owned funds.
"The benefits and uses of sovereign investments are indisputable, be it from stabilising state economies, ensuring long-term sustainable growth and diversifying a country's investments," said Francis Dubas, Global Leader of Sovereign Financial Institutions at Deloitte. "Since the 1950s, the numbers of SFI has increased, and their sizes have drastically grown, with as many as 40 SFI worldwide. Governments are eyeing the possibilities which their state-owned funds provide now more than ever."
"Potential growth of SFI is expected to range between $6 and $10 trillion by 2013, as calculated by the International Monetary Fund. In addition, it was disclosed by the US-based Sovereign Wealth Fund Institute that by the end of 2011, over half of total sovereign investment funding, estimated at $4.8 trillion worldwide, was driven by oil and gas revenues, most of which was generated by the Middle Eastern region," he added.