Global Uncertainty Drives Middle East Sovereign Investors Toward Strategic Energy Assets
RIYADH — Sovereign investors across the Middle East are placing greater emphasis on energy security as they navigate an increasingly volatile global environment, according to the 14th annual Invesco Global Sovereign Asset Management Study.
The survey found that 89 percent of Middle East sovereign wealth funds identified energy security as a top investment priority, surpassing the global average of 80 percent. Another 67 percent of regional investors identified critical infrastructure as a key priority, reflecting a growing focus on securing the physical and digital foundations of economic stability.
Josette Rizk, head of Middle East and Africa at Invesco, said: “Sovereign investors in the Middle East are taking a highly pragmatic approach to a more uncertain world. What stands out is the clarity of the region’s investment priorities.”
Every Middle East sovereign wealth fund surveyed expects the next decade to be more challenging than the previous two, compared with 69 percent of funds globally. While only 31 percent of regional funds currently rank resilience as a core priority, nearly half said resilience is becoming as important as returns in portfolio construction.
Private Markets and AI Focus
All Middle East sovereign wealth funds identified private markets as a key driver of long-term returns, significantly above the 65 percent global average. Infrastructure is expected to attract the largest share of additional capital, with 70 percent of respondents planning to increase allocations over the next 12 months.
On artificial intelligence, the conviction is particularly strong. All regional sovereign wealth funds view AI as a transformative technology with a multi‑decade impact, compared with 77 percent globally. AI infrastructure and semiconductors are seen as especially compelling, with 100 percent of funds identifying them as attractive long‑term themes.
Adoption of AI in investment processes is already well underway, with 88 percent of Middle East sovereign investors using it, exceeding the 69 percent global average. All sovereign wealth funds in the region report using AI in their processes.
The study was conducted between January and March by NMG Consulting, with sampled institutions managing a combined $29 trillion in assets. The findings reflect a region adapting to a more uncertain world by securing strategic assets from energy infrastructure to advanced technology that will underpin long‑term growth.
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