Arab Financial Forum

Supporting Arab Financial Markets

Sovereign Wealth Funds and Global Markets Study

Growth The last decade has seen a dramatic growth in the size and international activities of Sovereign Wealth Funds (SWFs). The new Arab Financial Forum (AFF) study looks at the implications of this growth.

Control Before the financial downturn there was concern from governments and companies on the independence of the SWFs. There have been questions about the independence of such funds given that they represent the investment arm of countries. Today such funds are being welcomed as part of the solution to the global financial crisis. Even so there remains the question of the degree of control and commitment by funds who report to ministers and not to individual investors.

Transparency Transparency is another linked concern. Like private equity funds, the SWFs led by Abu Dhabi and Singapore, are developing their own code of practice to reassure those involved with regulation and accountability.

Skills Yet another challenge for the SWFs is to manage their growth by recruiting and developing experienced investment managers. SWFs have a chequered history of investment success. Managing growth at a time of global downturn is a problem facing all SWFs.

Experts The AFF study of the implications of the growth of SWFs has a number of contributions from experts offering their analysis on how intentional financial markets will adapt to the SWF investors. The study looks at the history of the growth of SWFs and some of the challenges they face. It considers the various strategies and tactics employed in SWFs as well as reviewing current examples of ongoing investments in different countries. Finally the study looks at the impact of SWFs on financial markets, energy markets and commodity markets.

Distribution The study will go to the OECD-MENA financial reform programme. Copies will be sent to the governors of central banks, ministers of finance, heads of stock markets and those running professional bodies for those involved in financial markets.

More For further information please contact Maya Rusinowicz who runs the AFF secretariat. Her email is projects@meconsult.co.uk or telephone 020 7591 4816.