Things are slowly changing for their international status quo banksbecause to a certain extent the rich sovereign wealth funds countries of the Middle East want to turn it into a global financial and business center, the news agency says in an extensive report Bloomberg. When Credit Suisse, Sam Bankman-Freud, and the richest businessmen in Southeast Asia tried to raise capital for their ventures in 2022, they turned not to Wall Street, as one would expect in a recession, but to the Middle East. Given the problems that the markets faced last year, sovereign wealth funds have become “an oasis in the investment desert.” Soaring energy prices have boosted the wealth managed by these funds to more than $3.5 trillion. dollars, which exceeds the GDP of the British economy. Now these institutions are funding some of the largest rescues, investments and buyouts.

According to Bloomberg sources, one of the largest banking groups in the Middle East, First Abu Dhabi Bank, the largest bank in the United Arab Emirates, was considering a takeover bid for Standard Chartered, which has a capitalization of more than $20 billion. Saudi Arabia’s largest bank, the National Bank of Saudi Arabia, for its part, has become Credit Suisse’s largest shareholder, and Sam Bankman-Fried recently visited the UAE in a desperate attempt to raise capital for his now-defunct FTX digital currency trading platform. At the same time, Southeast Asia’s richest Indian businessman, Gautam Adani, has turned to these sovereign wealth funds with the ultimate goal of raising around $5 billion in capital to strengthen his empire and de-leverage. Mukesh Ambani, who is also very wealthy, appears to be following the same strategy as he tries to attract investment in his groups’ energy companies. Middle East sovereign wealth funds invested $89 billion last year, more than double what they did in 2021, according to Global SWF data. Of these, $51.6 billion was for Europe and North America. Despite these dizzying sums, vast sums remain untapped. The leaders of the Saudi Arabian Public Investment Fund, which manages $620 billion in assets, are already under significant pressure from Prince Mohammed bin Salman, who wants to wean the country’s economy off oil. In Doha, the $450 billion Qatar Investment Authority is looking for new international opportunities after the World Cup.

In 2022, sovereign wealth funds in the Middle East directed $89 billion in investments, of which $51.6 billion was earmarked for Europe and North America.

In previous years, Middle Eastern investors have snapped up glittering assets such as the Manchester City and Paris Saint-Germain football teams, London’s luxury department store Harrods, and Manhattan real estate. This time, those same investors have refined their strategic approach, using their vast wealth to capture a greater share of the global economy, enhance their geopolitical role, and diversify their economic activities. Finally, the state treasury has been significantly replenished by the war in Ukraine and the ensuing energy crisis, giving a daily profit of $1 billion from oil exports.