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GCC sovereign wealth funds are boosting investments in domestic and regional projects to counter a fragmenting global economy, the World Economic Forum said in an analysis on June 23, 2026. Once limited to managing commodity revenues, the funds now act as strategic tools for resilience, supporting high-growth sectors while global assets under management exceed $15 trillion according to the Sovereign Wealth Fund Institute.
The World Economic Forum report listed rising protectionism and geopolitical tensions, including disruptions from the US-Iran conflict affecting the Strait of Hormuz, as key drivers of economic fragmentation. Policy makers are urged to build adaptive supply chains that treat connectivity as a multiplier for growth through purposeful capital deployment. Sovereign wealth funds have gained prominence worldwide as platforms for stability, with new funds launched in countries such as Egypt, Turkey and Indonesia alongside expansions in advanced economies.
PwC Middle East figures show Middle East sovereign wealth funds reached $4.9 trillion in assets under management in 2024 and are projected to grow toward $7.3 trillion amid sustained oil revenues and diversified portfolios. Global SWF rankings updated in June 2026 place the Abu Dhabi Investment Authority above $1.1 trillion, Saudi Arabia’s Public Investment Fund near $1.15 trillion and Kuwait’s KIA over $1 trillion, confirming the GCC’s dominant position. GCC funds deployed $25 billion globally in the first quarter of 2026, maintaining momentum despite regional strains.
The World Economic Forum analysis detailed intensified GCC collaboration, including a March 2024 memorandum of understanding between Saudi Arabia’s Public Investment Fund and Bahrain’s Mumtalakat that deepens joint investments. The Saudi-Bahraini Investment Company targets up to $5 billion in Bahraini sectors and has opened an office in Manama to advance implementation. Mubadala of Abu Dhabi has partnered with Mumtalakat since 2021 on co-investments and knowledge sharing, while the newly established Singapore Gulf Bank works with Bahrain’s tourism ministry and labour fund to generate employment.
According to the forum’s story, these funds are bridging gaps in resilience sectors with long-term return profiles, including a $5 billion Public Investment Fund-backed HUMAIN partnership with Amazon Web Services to create an artificial intelligence zone in Saudi Arabia. Mubadala joined Stonepeak in a $300 million transaction for container-leasing platforms that support global trade flows. Mumtalakat portfolio company Alba completed a roughly $2.2 billion acquisition of Aluminium Dunkerque, and the fund has expanded healthcare and biotechnology holdings through ties with M42 and SandboxAQ.
The World Economic Forum report highlighted flagship connectivity initiatives that reinforce regional integration, such as the planned $250 billion GCC Railway spanning 2,177 kilometres across all six member states. Additional projects include the FIG sub-sea cable system linking Bahrain, Iraq, Kuwait, Oman and Saudi Arabia as the region’s largest, alongside Mumtalakat-backed investments in the SEA-ME-WE 6 and Al Khaleej cable systems. A new maritime link between Bahrain’s Khalifa Bin Salman Port and Saudi Arabia’s King Abdulaziz Port further enhances trade efficiency.
Bahrain’s Ministry of Industry and Commerce data indicates that In-Country Value programmes grant a 10 percent procurement preference in Saudi Arabia to Bahraini firms meeting 40 percent local content thresholds, with reciprocal benefits extended to UAE and Bahrain entities under joint agreements. The forum’s analysis noted that such policy alignments treat the GCC as a unified bloc, reducing barriers and enabling more efficient capital flows across borders. This coordination complements national visions by combining sovereign capital with private-sector expertise to unlock opportunities in strategic industries.
