Sovereign wealth funds (SWFs) from Gulf Cooperation Council (GCC) countries continue to play a dominant role in global direct investments despite regional tensions stemming from the ongoing US-Iran conflict. According to recent data from IE University, four major Gulf funds—the Qatar Investment Authority (QIA), Abu Dhabi Investment Authority (ADIA), Mubadala, and Saudi Arabia’s Public Investment Fund (PIF)—collectively represent about 60% of sovereign wealth fund direct investments worldwide.

The shift within the SWF sector from portfolio holdings toward ownership stakes in foreign private companies and assets has been largely driven by these Gulf funds, according to a report by fDi Intelligence, which cited the university’s figures. Since the outbreak of the US-Iran war, government-linked investors from the region have reaffirmed their commitment to overseas investments, signaling continued engagement in global markets despite industry warnings of a reassessment of foreign commitments.

Notably, the PIF, QIA, and Abu Dhabi’s newly established L’IMAD fund have taken part in a significant equity syndication to support Paramount’s acquisition of Warner Bros Discovery. These Gulf investors hold minority, non-voting stakes, with reported equity commitments around $24 billion. Alongside this, Mubadala and QIA have also backed a $575 million fundraising round for the US sports technology company Whoop. Meanwhile, ADIA has teamed with French private equity firm Ardian to create a real estate investment platform, further expanding its footprint in European markets.

In energy sector transactions, the International Holding Company’s subsidiary 2PointZero reportedly acquired Traverse Midstream Partners—a US gas infrastructure operator—for $2.25 billion, underlining Gulf sovereign investors’ ongoing interest in strategically significant assets. Daniel Brett, head of research at Global SWF, noted that despite the geopolitical uncertainty, funds such as PIF, L’IMAD, and QIA remain capable of supporting large-scale international deals, particularly those with strategic or advanced development status.

A spokesperson from the UAE Ministry of Foreign Affairs emphasized that the country’s economic policies are designed to withstand geopolitical pressures, affirming there have been no changes to existing investment plans. Geoeconomic consultancy Polisphere Advisory’s Robert Mogielnicki suggested that Gulf sovereign funds will maintain their pursuit of promising global investment opportunities, although Brett cautioned that new foreign direct investment commitments may now face stricter scrutiny due to the war’s complexities. This includes navigating the ongoing challenge of balancing international investments with growing domestic priorities, a strategy exemplified by PIF’s recent increased focus on projects within Saudi Arabia.