The Middle East has become an increasingly important region for global investments, with several countries establishing massive sovereign wealth funds and thriving local mutual fund industries. Key factors driving growth include rising oil revenues in Gulf states, economic diversification plans, and increasing private wealth. This article will provide an overview of the top 10 investment funds based in the Middle East region.
Largest sovereign wealth funds in the Middle East
The Middle East is home to some of the world’s largest sovereign wealth funds (SWFs), which are state-owned investment funds primarily funded by oil and gas revenues. According to the Sovereign Wealth Fund Institute, the top 5 SWFs in the region are: 1) Abu Dhabi Investment Authority (UAE) – $830 billion in assets, largest SWF globally. 2) Kuwait Investment Authority (Kuwait) – $533 billion in assets. 3) SAMA Foreign Holdings (Saudi Arabia) – $515 billion in assets. 4) Investment Corporation of Dubai (UAE) – $302 billion in assets. 5) Qatar Investment Authority (Qatar) – $295 billion in assets. These massive funds invest globally in a diversified set of assets, from public equities to real estate to private equity. Their size and reach make them influential market players.
Top mutual funds in Saudi Arabia
Saudi Arabia has the largest mutual fund industry in the Gulf region at over $40 billion in assets. The top 5 funds here are: 1) Al Rajhi Multi Asset Growth Fund 2) Al Rajhi Multi Asset Conservative Fund 3) Al Rajhi Multi Asset Moderate Fund 4) Alinma Multi Asset Conservative Fund 5) Alinma Multi Asset Balanced Fund. These funds are offered by leading institutions like Al Rajhi Bank and provide retail investors exposure to sharia-compliant equities and sukuks.
Major mutual funds in the UAE
In the UAE, the top 5 mutual funds are: 1) Emirates Active Managed Fund 2) Emirates MENA Top Companies Fund 3) Emirates Islamic Money Market Fund 4) Emirates Global Sukuk Fund 5) Emirates Global Quarterly Income Fund. Prominent fund managers include Emirates NBD Asset Management and Mashreq Asset Management. Many funds focus on UAE/GCC equities or Islamic finance products, tapping into regional growth sectors.
Leading mutual funds in Egypt
Egypt boasts the largest mutual fund industry in North Africa and the second-largest in the Middle East after Saudi Arabia, with assets of $5.5 billion. Top funds include 1) Banque Misr Fund 2) CI Asset Allocation Fund 3) Al Mal Fund 4) AAIB Fund 5) EFG Hermes Alkima Balanced Fund. There is a diversity of equity, fixed income, and money market funds catering to local investors.
In summary, the Middle East hosts immense sovereign wealth funds fueled by oil, as well as vibrant mutual fund industries meeting rising local demand. Top funds come from the UAE, Saudi Arabia, Kuwait, Qatar and Egypt. Given the region’s rapid growth, its investment funds will continue gaining influence internationally.