Gulf states review sovereign wealth funds amid Iran conflict

The financial shock from the Iran war, with its disruptions of oil shipping and global trade, is leading at least three Gulf states to review how their sovereign wealth funds are managing trillions of dollars in global investments.

The reassessments could lead to measures such as delaying some overseas investments, reassessing sponsorship commitments and potentially selling government assets in order to relieve pressure on their economies, Reuters reports, citing an unnamed Gulf official.

The individual sovereign funds were not identified by the news agency, which said three of the four largest economies in the Gulf – which are Saudi Arabia, the UAE, Qatar and Kuwait – were formally conducting the reviews.

Saudi Arabia’s Public Investment Fund, Abu Dhabi’s Mubadala, the Qatar Investment Authority and Kuwait Investment Authority are continuing to pursue international deals, while their governments decide whether spending priorities or the pace of investments should be adjusted as the crisis unfolds, Reuters said.

Meanwhile, Saudi Arabia’s $38 billion push to build a global video-game industry is facing new uncertainty as the Iran war raises security concerns that could deter foreign developers, investors and esports events the kingdom hopes to attract, Bloomberg reports.

The initiative, led by the PIF’s Savvy Games Group as part of the kingdom’s economic diversification strategy, depends heavily on international partnerships that could slow if regional instability persists.