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Gulf sovereign wealth funds have had the worst performance in governance and transparency compared to their peers in other countries, according to a study published by the Global SWF platform, which specializes in the analysis of wealth funds.
And Bloomberg reported that the annual study ranked sovereign wealth funds from countries in the region based on their commitment to governance, sustainability and flexibility, and included 70 SWFs and 30 funds. pension across the world.
The study concluded that “the three big funds of the Middle East degrade in the criterion of confidence”, referring to the investment funds of Abu Dhabi, Qatar and Kuwait.
The study also found that many of the region’s largest sovereign entities lack transparency and insufficient disclosure, explaining that wealth funds from countries like Norway, New Zealand and Australia enjoy higher levels. governance, sustainability and flexibility.
The Qatari wealth fund has removed many indicators and information from its website, while the Kuwait Investment Authority “provides less clarity on the two funds (which it manages) and how liquidity affects them”, according to the report.
Kuwait’s political crisis. $ 600 billion waiting for someone to handle it
While the report said the Saudi Public Investment Fund had started forming a working group on governance, sustainability and resilience, it said the Abu Dhabi Investment Authority lost some points. ” on its increasingly opaque annual report “which no longer includes details such as the fund’s relationship with the government.
The report states that only 4 funds in the Middle East exceed 50% of the index, including Mubadala Investment Company in Abu Dhabi and Mumtalakat Holding Company, which is Bahrain’s sovereign wealth fund.
Bloomberg said the lack of clarity in public finances in the Gulf and the frequent inability of authorities to provide timely statistics are a source of frustration for investors.
The U.S. network was unable to contact Kuwait Investment Authority officials for comment, while agencies in Abu Dhabi and Qatar declined to comment.
A Bloomberg report released last year indicated that fortune funds in the Middle East have accumulated more than $ 2 trillion in assets over the past decades, most of which came from oil sales.
But in February 2020, the International Monetary Fund warned that Gulf states that rely heavily on their oil revenues for deeper reforms or risk seeing their fortunes evaporate in 15 years as global demand for oil falls and that prices fall.
In recent months, the International Monetary Fund expected the economic recovery in the Middle East and North Africa to accelerate this year with the end of the crisis between Qatar on the one hand and Egypt. , Saudi Arabia, United Arab Emirates and Bahrain on the other hand. .
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