‘Oil Five’ Sovereign Wealth Funds exceed $4tr

The Gulf Cooperation Council (GCC) is a regional intergovernmental organization consisting of six Arab countries in the Middle East: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. These countries are known for their vast oil reserves and production, which have contributed significantly to their economic growth and development over the years.

Sovereign wealth funds (SWFs) are investment vehicles created by governments to manage their foreign currency reserves and other assets. The “Oil Five” refers to the SWFs of the five GCC countries with the largest oil reserves and production: Saudi Arabia, Kuwait, Qatar, United Arab Emirates, and Bahrain.

According to a report by the Sovereign Wealth Fund Institute (SWFI), the combined assets of the “Oil Five” SWFs reached $4 trillion in 2020, surpassing their previous record high of $3.9 trillion in 2019. This represents an increase of 2.5% from the year before.

The report also notes that the “Oil Five” SWFs have been consistently among the largest and most active investors globally, with a combined investment volume of $647 billion in 2020. This is equivalent to 13.8% of all global SWF investments.

It's worth noting that while oil reserves and production are significant contributors to the wealth of these countries, they also have diversified their economies and invested heavily in other sectors such as finance, tourism, and technology.