Jun 08 2010 |
more articles from
|
SWFs boost direct investments in H2 2009
Global sovereign wealth funds (SWFs) more than doubled their direct investments in the second half of 2009 as they were apparently buoyed by post-crisis recovery and strong oil prices.Figures by the US-based SWF Institute showed the Abu Dhabi Investment Authority ( Adia ) and SWFs in the Middle East and other countries pumped $67.8 billion (Dh249bn) in direct investment into international markets in the second half of 2009.
The investments are more than double those channelled by the SWFs in the first half of 2009, estimated at $25bn.
The figures meant that total SWF direct investments in 2009 stood at $92.8bn, far higher than the $69.9bn channelled by the SWFs through 2008, according to the report. SWF direct investments had picked in late 2007 and early 2008 to reach around $29.2bn in the first quarter of 2008 before they started to recede to reach $18.8bn in the second quarter. They dipped to one of their lowest levels of about $8.1bn in the third quarter of 2008, when the global fiscal crisis erupted.
Nearly 44 per cent of the world's SWF assets are controlled by Middle East funds, mostly Adia , the Kuwaiti and Qatari investment authorities and the Saudi Arabian Monetary Agency (Sama).
Previous data have shown Gulf SWF activity is closely associated with oil exports as they account for the bulk of the region's income.
Oil prices averaged around $45 in the first half of 2009 before they climbed to nearly $65 in the second half.
According to the Washington-based Institute of International Finance (IIF), strong oil prices and post-crisis recovery of global markets boosted Adia 's assets by nearly $50bn in 2009 and the wealth is projected to swell further by $30bn this year.
The rebound in the assets of Adia , ranked the world's largest SWF, follows a loss of around $45bn during 2008 because of the global financial distress.
Figures by Sama, a semi-SWF institution which also acts as Saudi Arabia's central bank, showed the improvement in oil prices boosted its assets from SR1,492bn (Dh1461bn) at the end of July last year to nearly SR1,570bn at the end of the year. By the end of April, they climbed to SR1,605bn after oil prices swelled to nearly $80.
The SWF Institute put the total wealth controlled by Adia and similar funds in other countries at around $3.5 trillion at the end of 2009.
Around 47 per cent of those resources are invested in listed equity and 14 per cent in unlisted equity. The funds also included 14 per cent in real estate, nine per cent in infrastructure, nine per cent in convertibles and two per cent in fixed income, according to the report.
By Nadim Kawach
© Emirates Business 24/7 2010
Zawya Comment Policy
-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Copyright © 2012 Zawya Ltd. All rights reserved. |
provided by www.zawya.com |
Post Your Comment