How will they ensure the Gulf States investment decisions do not shake global financial markets?
Sovereign investors, not only from the GCC but also from Asia and other regions, have now become so big that their actions have ripple effects for markets around the world. So far, sovereign wealth funds have been prudent, sophisticated investors. But as Gulf funds shift from being passive investors to a more active approach—a trend we are already seeing—anxieties about their actions are likely to intensify. As world-scale players, they have a responsibility to recognize the concerns of others. 4. How will they allay geopolitical concerns about government-controlled investment funds? Many Western policymakers worry that sovereign investment funds in the Middle East, Russia, China, and elsewhere might use their huge wealth for political purposes. Those fears are likely to intensify as Gulf funds become more active investors. Many Western policymakers have called for the creation of disclosure standards for government investors. But a key factor in assuring greater transparency will be t
